Firstly they cannot charge you £200 to cancel, the can only charge a "reasonable" fee which under the 2015 insurance act should be £30-50. Contact Lancaster insurance under a different name, a neighbours address and name is ideal, and ask them to quote you using the identical details on the BMW. If they refuse to quote, then they are being honest. If they provide a quote, get it in writing, then re-contact them in your own name advising that they are breaching FCA regulations under PRIN by misleading you and not treating your fairly. Advise them you wish to continue the policy that was on the MINI onto the BMW. If they then advise as before saying they will not cover, you can then advise them they would as you now have the evidence.
They now cannot refuse cover,and it would be unfair of them to penalise you by charging for you to cancel.

Raise a complaint with them, they have 48 hrs to respond and eight weeks to conclude. Advise them of the above, for misadvising and mis-selling policies in breach of the regulations and for the cancellation fee in breach of the 2015 insurance act. Then contact the Financial Ombudsman Service(FOS) and do the same. www.financial-ombudsman.org.uk/consumer/complaints...m Make the insurer aware you have contacted the FOS. You should find it all then gets resolved very quickly.