Coherent Synchrotron Radiation (CSR) can play an important role by not only increasing the energy spread and emittance of a beam, but also leading to a potential instability. Previous studies of the CSR induced longitudinal instability were carried out for the CSR impedance due to dipole magnets. However, many storage rings include long wigglers where a large fraction of the synchrotron radiation is emitted. This includes high-luminosity factories such as DAPHNE, PEP-II, KEK-B, and CESR-C as well as the damping rings of future linear colliders. In this paper, the instability due to the CSR impedance from a wiggler is studied assuming a large wiggler parameter $K$. The primary consideration is a low frequency microwave-like instability, which arises near the pipe cut-off frequency. Detailed results are presented on the growth rate and threshold for the damping rings of several linear collider designs. Finally, the optimization of the relative fraction of damping due to the wiggler systems is discussed for the damping rings.