1st central problems can anyone help

A few months back I purchased a new car 1st Central we're quoting more expensive so decided to cancel my policy didn't have long left on policy when trying to do this they told me I couldn't unless I payed over 200 as someone had made a claim against myself I was never contacted regarding this I payed them over 200 pound and told them to consult me with anything which was happening I never heard a thing for over 6-7 months came back from holiday this week and told by my grandmother my insurance called and she told them
I would be back on Saturday they sent an email stating they had payed out when I contacted them they told me they were not admitting liability but because I sold my car they could not inspect it I sold my car 6 months after this apparent accident took place never happened should they not have inspected my car at the time they claim was made against myself ? Accident apparently happened start of October but third party didn't report it to mid November doesn't that raise suspicion I gave them two statements one from myself and passenger that nothing happened I feel because my insurance failed to do there work at the time I'm getting punished losing 9 years no claims for absolute nothing would never ever recommend them complete sham of insurance company the staff are arrogant and untrained