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Is car insurance considered a utility bill?

Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella...

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Reviewed byDaniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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The lowdown...
  • Any service required to keep a home operational is referred to as a utility. In most cases, utilities are provided by local governments.
  • Utility bills are documents mailed to your address by county or city service providers requesting payments for services such as electricity, water, gas, trash, etc.
  • Car insurance bills can be paid monthly, quarterly or annually and they are often confused for utility bills.
  • Car insurance providers are for-profit organizations with no ties to local governments whatsoever, and for that reason, are not considered as billing utilities.
The average American household owns at least one automobile. To be able to operate these vehicles on US roads legally, drivers are required to carry some level auto insurance coverage that varies depending on where you live.

As a result, car insurance has become so common that many households see it as a utility bill. The similarities between the car insurance bill and utility bills such as gas, water, and electricity are overwhelming.

If you have a car, make sure that it’s insured before you hit the road. Driving without car insurance can attract penalties such as hefty fines, suspension of your driver’s license, and even jail time. When buying auto insurance products, check with your state’s insurance departments for the requirements and compare quotes from different providers until you get one that’s affordable and fits your needs.

Learn more about car insurance below and make sure to use our free insurance comparison tool above today!

Car Insurance Is a Necessity

AdobeStock_70348750-1600x1600Car insurance is not a luxury; it’s a necessity. You need car insurance to drive to work, drop off your kids at school, and other activities that keep the household going. Utilities and car insurance payments should both be prioritized when budgeting for household expenses.

It’s hard to isolate car insurance into a different category from utility bills when you have to pay for it each month. However, the two are hardly the same.

What’s the difference between car insurance and utility bills?

Insurance, in general, is a contract between the insurer (the insurance company) and the insured (you) to provide protection against financial losses. The policyholder pays a premium on a monthly, quarterly or annual basis depending on what’s agreed upon in the contract in exchange for coverage.

Car insurance is a financial contract, and the payments are your way of honoring the agreement. Auto insurance companies provide these services purely for the purpose of generating profits, and thus car insurance bills don’t fall under the category of utility bills.

Though some utility bills are provided via private companies, the providers have to work hand in hand with city or county authorities to offer their services. Therefore, these services are placed under the utility bills category.

Invoices That Count As Utility Bills

AdobeStock_64114040-1600x1600Many people have problems trying to decide how to label certain expenses on their monthly budget or accounting ledger. Only a few bills fit the definition of the term ‘utility bill.’ A public utility is any service deemed necessary to keep a home operational and is offered via or with the help government entities such as city or county governments.

A utility bill is an invoice sent to your specific address commercial office or personal residence by the company providing the service. Car insurance is also billed similarly, but it’s not a utility bill. But that does not make it less important. You will still need car insurance to drive around.

When looking for car insurance, shop around. Compare quotes from several providers before you settle for one. Here are some of the invoices that count as utility bills:

– Electricity and Gas

Both electricity and natural gas can be used to run power connections such as household dryers, stoves, and water heaters in a home. They are both considered public utility bills.

Though as the property owner you can decide to use one of the two to power your systems, these services are provided by the same local utility. The company runs the connections to properties, maintains the connections, and provides necessary services if the connection fails.

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– Water

A household can’t operate without water. The government, through city and county authorities, provides water to residents. Water services are provided with the help of public utilities.

Though property owners are responsible for running water pipes up to the connections, local water companies lay the piping required to connect the property to the county or city water supply. The water company, a public utility, is also responsible for purifying the water to make it safe for drinking.

– Cable and Landline Telephone

AdobeStock_102812393-1600x1600Despite the fact that cable services are mostly offered by private companies, they are also utility bills. Cable providers run large underground wires, usually with the help of the city or county government, and connect households that wish to have their homes connected to the cable systems. Families that choose to have their homes connected receive an invoice for the service in the form of a utility bill.

Just like water and power companies, land telephone companies are also public utilities. Car insurance bills don’t fit the definition of a utility bill. However, auto insurance is a necessary expense and not having it with you can attract serious consequences. Compare quotes from different providers when shopping for car insurance to increase your chances of getting a better deal.

Can your car insurance bill be used as proof of residence?

The car insurance bill and utility bills have a lot in common. For instance, both bills arrive once a month, they are sent via mail or email, and they are attached to your residence.

However, a car insurance bill cannot be used as proof of residence. Many lenders will ask you to verify your permanent address when applying for a loan.

While some will only accept the water and electric bill, others will also accept the telephone and utility bills. None will accept your car insurance bill as proof of your permanent address. The address on the car insurance bill can be easily changed by simply talking to your insurer or the agent which reduces the credibility of a car insurance bill as a verification document.

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