Wisconsin gap insurance: Everything you need to know

How much is gap insurance in Wisconsin?

On average, gap insurance in Wisconsin costs $2,301 a year, but rates vary by company. The cost of your vehicle also affects gap rates. Expensive or luxurious cars tend to depreciate faster than standard vehicles, meaning gap coverage would have to pay more, which increases coverage rates.

Cheapest gap insurance companies in Wisconsin

The cheapest gap insurance in Wisconsin is offered by Travelers, with an average yearly cost of $1,252. Not all car insurance companies provide gap coverage, and rates can vary significantly among carriers.

Take a look at the table below to see the cheapest Wisconsin insurance companies for gap coverage.

Company	Auto insurance rates with gap premium	Gap premium
Travelers	$1,252	$34
Auto Club Group - ACG (AAA)	$1,505	$82
Erie Insurance	$1,733	$188
Nationwide	$1,993	$58
Auto-Owners	$2,221	$73
Progressive	$2,947	$32
Farmers	$4,452	$206

Read our methodology

Average gap insurance cost in Wisconsin by city

Gap insurance costs the most in Milwaukee, with an average rate of $2,601, while Oshkosh has the lowest rate at $1,427. Where you live in Wisconsin can impact your insurance costs. Cities with higher crime and theft rates have higher auto insurance rates since the risk of damage or theft is higher.

Here are the average gap insurance rates by city in Wisconsin

City	Auto insurance rates with gap premium	Gap premium
Oshkosh	$1,427	$62
Sheboygan	$1,491	$66
Sun Prairie	$1,565	$68
Menomonee Falls	$1,594	$64
Madison	$1,636	$70
Wausau	$1,684	$83
Evansville	$1,741	$77
Eau Claire	$1,782	$85
Cudahy	$1,887	$75
Portage	$1,900	$88

Read our methodology

How much is gap insurance in Wisconsin by age group?

Gap insurance rates are higher for younger drivers because they have less experience and are more likely to take risks while driving, increasing the odds of a total loss. As drivers get older, their rates go down. For example, an 18-year-old pays an average of $8,837 per year, while a 25-year-old pays around $2,852 annually.

The table below lists the average gap insurance rates in Wisconsin based on age.

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$8,837	$309
Young adult	$2,852	$120
Adult	$2,301	$96
Senior	$1,984	$81

Read our methodology

How does gap insurance work in Wisconsin?

When you buy or lease a new car, it depreciates quickly resulting in you owing more than it's worth. If your car is totaled, your insurance company will only pay its actual cash value, which might not cover your full loan balance. That's where gap insurance helps. If your car is totaled or stolen, gap insurance covers the difference between your car's value and what you still owe on the loan.

"Gap is designed for people that take long-term loans and/or roll taxes, service plans, or warranties into their loan," said Zack Pope, agency manager at David Pope Insurance in Missouri. "Most gap coverages only go a certain percent over market value to pay off a loan for a totaled vehicle (typically 25%). It costs significantly less money to get gap through your insurance than to purchase it from the dealership."

For example, imagine you have a $40,000 car loan, but your vehicle's actual cash value is only $35,000. If someone steals your car, your insurance company reimburses you $35,000, minus your deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim.. Gap insurance pays the remaining $5,000 you still owe on the loan. Without gap insurance, you must cover this difference out of pocket.

Once your loan balance is lower than your car's value, you can drop gap coverage. You can cancel gap insurance anytime, but you may not be able to add it whenever you want. Most insurers require you to add the coverage soon after you buy a car.

Many lenders also require gap insurance when you take out a loan. You can buy gap coverage from your lender or car dealership, but adding it to your existing auto policy usually costs less.

Where to buy gap insurance in Wisconsin

Many insurance companies, including major carriers, offer gap insurance in Wisconsin. You can easily add this coverage to your existing auto insurance policy or buy a standalone policy.

Adding gap coverage to your car insurance policy usually costs less. You can also buy gap coverage from most car dealers and lenders, but their policies are often more expensive, making them a less appealing choice.

Methodology

We gathered car insurance rates with and without gap insurance through our data partner, Quadrant Information Services.

Averages are annual and based on our full coverage data set. This data set is based on:

Bodily injury liability of $100,000 per person and $300,000 per incident
Property damage liability of $100,000 per incident
Comprehensive and collision deductibles of $500
40-year-old driver
Honda Accord LX
Good credit
A clean driving record
12-mile commute, 10,000 annual mileage

To show the cost of gap insurance, we have compared rates with gap insurance added to the averages without gap insurance, and the difference is shown as the annual cost of gap insurance.

Rates are based on an analysis of over 5 million data points in all 50 states and Washington, D.C. from 138 companies.

Wisconsin gap insurance: FAQs

Is gap insurance required in Wisconsin?

Gap insurance isn't required by law in Wisconsin, but your lender may require you to have the coverage.

Who should buy gap insurance in Wisconsin?

If you have a car loan or lease in Wisconsin, you might need gap insurance. If you made a small down payment, you could quickly owe more than your car is worth since vehicles lose value faster than you can pay the loan. In this case, gap insurance can be a smart choice.

You don't need gap insurance if you own your car or make a large down payment.

What is standalone gap insurance in Wisconsin?

Standalone gap insurance is a separate policy, not a part of your car insurance. You can buy gap insurance from your lender or a private company as an independent policy.

Does gap insurance cover leased cars in Wisconsin?

Wisconsin gap insurance covers leased cars when the driver owes more than the car's current market value. You can remove gap coverage once your vehicle is worth more than what you still owe.