I am handing back my peugeot early and I have been reading up about the best ways to do this.

I have been sent the forms to send back - which I will not be doing but will be sending a letter instead as advised.

my question is that I have been also charged an 'early settlement fee of £270 on top of the £1021 that I already have to pay to bring it up to the 50% figure.
they say this 'early settlement fee' is relating to the insurance. They also say that I cannot transfer the insurance to another car.

I was hoping to find out if this is actually something that I have to pay. It seems a lot to have to pay considering I can't even transfer the insurance.