State Law Guide
If you paid off your loan early, you may be owed a GAP refund.
Wisconsin GAP Insurance Refund Guide
Under Wisconsin motor vehicle dealer GAP waiver law, Wisconsin consumers who pay off auto loans early are entitled to pro-rata GAP and warranty refunds. Dealers who fail to comply face Forfeitures of $25 to $500 per violation, and damages plus attorney fees against a licensee whose willful violation causes a loss (Wis. Stat. §§ 218.0161, 218.0163(2)).
Quick Answer
In Wisconsin, you're entitled to a pro-rata refund of unused GAP insurance and warranty products when your loan is paid off early. You can sue in Small Claims Court for up to $10,000.
Paid off your auto loan early in Wisconsin?
Check your rights under Wisconsin law
Key Wisconsin Provisions
| Provision | Requirement | Your Right |
|---|---|---|
| Cancel Anytime | Without penalty | You may cancel a GAP waiver at any time without penalty (Wis. Stat. § 218.0148(4)(a)) |
| Free Look Period | 30 days | If cancellation or termination occurs within 30 days after you bought the waiver, you are entitled to a full refund of its cost, or a full credit of the cost plus applicable finance charges (Wis. Stat. § 218.0148(4)(c)1.) |
| Refund After 30 Days | Partial refund, at least Rule of 78 | Later cancellation or termination, including payoff of the loan, entitles you to a partial refund or credit calculated no less favorably than the Rule of 78 (Wis. Stat. § 218.0148(4)(b)2., (c)2.), unless a total loss or theft occurred and you have received or will receive the waiver benefit (§ 218.0148(4)(d)) |
| Cancellation Fee | $0 (prohibited) | No cancellation, termination or similar fee may be charged (Wis. Stat. § 218.0148(4)(f)) |
| Auto-Refund on Payoff | Creditor must refund or instruct | On cancellation or termination, the creditor must make an appropriate refund or credit, or instruct the appropriate party in writing to make it (Wis. Stat. § 218.0148(4)(g)); the statute sets no day count |
| Bank and Credit Union Exclusion | Wis. Stat. § 218.0148(1)(c) | 'Creditor' in the GAP section excludes depository institutions and state or federal credit unions, so GAP on a bank or credit union loan is outside these rules |
| DFI Oversight | Division of Banking | The Department of Financial Institutions' Division of Banking has jurisdiction over retail installment sale financing and servicing (Wis. Stat. § 218.0111(1)(a)) |
Cancel Anytime
Without penaltyFree Look Period
30 daysRefund After 30 Days
Partial refund, at least Rule of 78Cancellation Fee
$0 (prohibited)Auto-Refund on Payoff
Creditor must refund or instructBank and Credit Union Exclusion
Wis. Stat. § 218.0148(1)(c)DFI Oversight
Division of BankingWhat Wisconsin Law Requires
Your Refund Rights
Under Wisconsin motor vehicle dealer GAP waiver law, Wisconsin consumers who pay off auto loans early are entitled to pro-rata refunds on unused GAP insurance and warranty coverage. You're entitled to a pro-rata refund based on unused coverage time.
GAP coverage is often refundable after an early payoff, a refinance, or a total loss on which GAP paid no claim — but the contract, state law, and unused coverage determine the amount.
A formal demand letter citing your state's exact statutes is harder to ignore than a generic email.
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Frequently Asked Questions
Does Wisconsin charge cancellation fees for GAP?
No, at any time. Wis. Stat. § 218.0148(4)(f) bars any cancellation, termination or similar fee on a GAP waiver. Within 30 days of purchase you get a full refund; after that, a partial refund calculated no less favorably than the Rule of 78 (§ 218.0148(4)(c)).
What refund calculation method does Wisconsin require?
Wisconsin sets a statutory floor: after the first 30 days, your partial refund must be calculated by a method no less favorable to you than the Rule of 78 (Wis. Stat. § 218.0148(4)(c)2., referencing § 422.209). Many contracts use straight pro-rata, which typically pays you more — check which formula yours specifies.
How long does a Wisconsin refund take?
Wis. Stat. § 218.0148 does not set a confirmed statutory deadline for issuing your refund once you cancel. Check your contract for a stated processing window, and follow up in writing if it is not honored.
Where do I complain about a Wisconsin dealer?
File GAP refund complaints with the Wisconsin Department of Financial Institutions, whose Division of Banking has jurisdiction over retail installment sale financing and servicing (Wis. Stat. § 218.0111(1)(a)). The Department of Agriculture, Trade and Consumer Protection also takes consumer complaints.
Wisconsin Regulatory Contacts
If you need to file a complaint or seek assistance, contact these official agencies:
Contact information is provided for reference. Verify current details on official agency websites.
Compare Other States
See how Wisconsin's laws compare to its neighbors and other states:
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