When you buy or lease a new car or truck, the vehicle starts to depreciate in value the moment it leaves the car lot. In fact, most cars lose 10-20 percent of their value within a year. Standard insurance policies cover the depreciated value of a car-in other words, a standard policy pays the current market value of the vehicle at the time of a claim.

If, when you finance the purchase of a new car, suv, truck and put down only a small deposit, in the early years of the vehicle's ownership the amount of the loan may exceed the market value of the vehicle itself.

In the event of an accident in which you've badly damaged or totaled your car, gap insurance covers the difference between what a vehicle is currently worth (which your standard insurance will pay) and the amount you actually owe on it.

WHEN YOU MIGHT NEED GAP INSURANCE

It's a good idea to consider buying gap insurance for your new car or truck purchase if you:

• Made less than a 5-10 percent down payment

• Financed for 48 months or longer

• Drive Over 10,000 - 12,000 Miles Per Year

• Leased the vehicle (carrying gap insurance is generally required for a lease)

• Purchased a vehicle that depreciates faster than the average

• Rolled over negative equity from an old car loan into the new loan

WHERE YOU CAN GET GAP INSURANCE? BETTEN BAKER

It's our goal at Betten Baker Chevrolet, Buick, GMC of Alma to help you make a confident decision about Gap and extended service contract plans. We're here to help you understand all of the available options so you can know exactly what you are getting when you purchase your vehicle from us.

Your complete satisfaction is important to us, so do not hesitate to contact us at (989) 463-2161.

Betten Baker is proud to serve the vehicle auto needs of Alma, as well as Mt. Pleasant, Midland, Clare, Alma, St. Louis, Cadillac, Harrison, Beaverton, St. Johns, Gladwin, Lansing, Breckenridge, Auburn, Saginaw, Bay City, Freeland and more!