Charge for fraud by misrepresentation

[banks4]

I received a producer from the Police and took in my licence, insurance and MOT within the 7 days, however, the Police came to my house and arrested me about 2 weeks later on a charge of fraud by misrepresentation, the Officer who gave me the producer said I did not have insurance as it had been cancelled, I was interviewed and I said I was not aware it had been cancelled. They bailed me and I made enquiries with the insurance who confirmed they had cancelled my policy because there had been some mix up and a payment hadn't been made. Therefore, I will get done for having no insurance which I totally accept was my fault but the Officer says he also believes I knew my policy was cancelled and therefore am guily of fraud by misrepresentation by handing in my insurance document. I'm really worried about this and wondered if anybody can tell me what is likely to happen