I had a similar experience when I acquired my XC90.
190 quid for the year fully comp on the Meerkat, or about the same for 6 months if I swapped my existing policy over. I paid the cancellation fee and told them to stick it. I could stomach a 10 or 20 quid admin fee for quitting, but 50 is simply blatant profiteering, bending the customer over and invading them just because they can.
Insurers are downright crooks, and while I wouldn't condone law breaking find I have little trouble sleeping when people do make fraudulent claims and get away with it. It's alright for insurers to shaft the honest and law abiding, so they're in no position to complain when someone does it back.
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