‘I’d file bankruptcy so fast’: Driver issues warning after getting stuck paying $700 a month for car she no longer drives

A woman was left paying $700 for her Tesla even though it was totaled in an accident that wasn't her fault. The reason? She forgot to sign up for GAP insurance, she says.

It stands for Guaranteed Asset Protection and TikToker named Drea (@dreahtx) wishes she'd known about it before purchasing a Tesla for herself as a 21st birthday gift.

In her clip, she says a hit-and-run driver smashed into her vehicle and ruined it. The person who rammed their vehicle into her EV ended up just ditching their whip and fleeing the scene of the crime. Drea's insurance only covered a portion of the cost of her vehicle—leaving her with $700 monthly payments she now has to cover because she didn't get the GAP option when purchasing her car.

In a viral TikTok that's accrued over 409,000 views as of Friday, she urged others to ensure that they're getting GAP coverage on their vehicles to avoid making the same mistake she did.

"So now I'm left paying $700 a month for a car I don't even have," she says at the end of the clip. "Thank God I still have this car but d*mn b*tch I don't want to pay that sh*t."

Investopedia defines GAP insurance as the following: "Gap insurance reimburses a car owner when the payment for a total loss is less than the outstanding loan or lease balance. Gap insurance covers the difference between the depreciated value of the car and the loan amount owed if the car is involved in an accident."

So when wouldn't you want to buy GAP insurance? If you own your car outright, then getting GAP isn't necessary at all: there's no loan/financing on the car, so purchasing GAP insurance would effectively be a waste of money. Also, if you put a massive down payment on your vehicle and are putting a little extra towards your monthly bill, if the amount that you've got left to pay on the vehicle is less than the estimated buyout or worth of your car, then getting GAP insurance may also not be worth it.

@dreahtx Let me make the mistake for yall, so yall dont have to 😭 #fyp #gapinsurance #carinsurance #tesla #newcar ♬ original sound - Drea

However, if you are purchasing a car with little to no down payment, and because these cars depreciate anywhere from 9% to 11% from the second they're taken off of the car dealership's lot, then it'll probably be in your best insurance to buy GAP insurance.

Some commenters chimed in with some of their own helpful pointers. One TikTok user recommended that if folks are purchasing their cars from a traditional dealership, they should avoid buying GAP insurance through them.

"DO NOT BUY GAP INSURANCE FROM THE DEALER! buy it from ur insurance company as an add on to ur policy. it's cheaper," they stated.

Another said they bought it through their bank, writing, "Girl I bought gap insurance through my bank for $180! I would never purchase a vehicle without gap insurance!"

And then someone else joked that they would've just called it a day monetarily.

"Girl I'd file bankruptcy so fast!!" they wrote.

One TikTok user thought that Drea was getting hosed for the cost of her vehicle, penning, "$700 for car payment is crazy."

"Do we need gap insurance or do we just need to buy a car within our budget," someone else replied.

One TikToker replied that they had GAP insurance and actually profited off of their accident as a result.

"I was in an accident and had GAP insurance but I had a Mercedes," they said. "Their insurance paid nearly what I owed on the car. The GAP money was paid to me."

However, some believed that GAP insurance isn't necessary at all, referencing that through a combination of what is presumably haggling and negotiation tactics they could ensure the total buyout of the car wouldn't necessitate that purchase of GAP coverage.

"IMO. If you purchased a car correctly you really shouldn’t need gap insurance," one said.

The Daily Dot has reached out to Drea via TikTok comment for further information.

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The post ‘I’d file bankruptcy so fast’: Driver issues warning after getting stuck paying $700 a month for car she no longer drives appeared first on The Daily Dot.

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