Sorry to bother you all. Just a quick question really.

I owned a 2015 car outright.

Stupidly, I took a £3000 logbook loan out against it.

I've been paying monthly etc

just last week, was involved in a non fault accident.

The insurance offer came back today and it just about covers the logbook loan.

My question is this..

will my insurance company pay me directly?

Or will they pay the logbook loan company first then give me whatever (if anything) is left?

I'm in no way trying to get out of paying the loan back.

.I owe it and will pay it

I would have preferred to continue monthly payments as normal

then I have money to buy another car.

I read somewhere that if the loan is a "fixed sum loan agreement" the insurance company will pay me directly.

They will only pay the loan company if it's on hire purchase.

How true is this?

I've looked at the logbook loan agreement from Varooma and it does say it's a fixed sum loan agreement.

However, there is also a bill of sale.. all in all, will I get the insurance money it will Varooma get it?

Thanks in advance

Hello and welcome to CAG.

You're not bothering us, that's what we're here for. People should be along over the course of the day with advice for you.

My best, HB

the money will goto you as you insured the car

not sure if you got this sorted but for anyone else looking at this post the last i am afraid i will have to correct you the info you have put on is wrong the insurance company pay off varooma first and pay you the balance if anything left over back to you afterwards. this is a fact

is it.

so bill of sale regulations don't count?

I don't know about the bill of sale regulation

the loan would be registered against the car and the insurance would do a hpi check on the car and they would pay the finance company off first,

I know that as i know someone who has a varooma loan and the insurance paid out the loan and the balance was paid after the finance was paid off first.

Varooma and any logbook loan company have to register their interest in the car otherwise they would be the losers in this.

I don't know about the bill of sale regulation

then don't speculate about what you are unsure of.......................

I am not speculating the truth of the matter is the bill of sale is registered in the high court by the logbook loan company so if you default they take your car and sell it on they have to take you to court to repossess your car.

The debt is registered so if in the event of the car being written off it would show on the hpi and the engineers would check the full hpi and they will find out whether its on finance and they will contact whoever the money is owed to and you only get the balance back if any owed to you. Just because you insure the car doesn't mean the insurance would have to pay out to you.

All I said in my last message was i didn't know about the bill of sale regulation.

I haven't researched it yet

The logbook loans are just loan sharks who prey on the vulnerable and i personally wouldn't go near them and when you do take a loan out with them you are handing over temporary ownership of your vehicle and there is nothing you can really do about it.

Don't own a car worth enough to put a logbook loan on, but they are to be avoided as a PDL also should.