Today, we’re explaining whether or not auto insurance is considered a utility bill.
Car Insurance is Not Considered a Utility
Typically, a utility bill is an invoice sent to you for trash, water, sewage, electricity, or gas services for a home.
A utility is a service that keeps your property up and running. Utility services may be provided by the government, the city, or through various organizations.
Car insurance doesn’t fall into any of the above categories. Car insurance is an indemnity contract between an insurer and a car owner that protects the owner from financial loss. It’s a service provided by a private company – your insurer. You don’t need car insurance to keep your property maintained.
Yes, most drivers make monthly car insurance payments – just like they make monthly gas, electricity, trash, water, sewage, and utility payments. However, that doesn’t mean car insurance is a utility. You also make monthly rent or mortgage payments, but these don’t count as utility payments either.
Can You Use Car Insurance Payments as Proof of Address?
If someone needs proof of residence, then they may ask you to bring something like a utility bill. A utility bill should have your name and address clearly listed.
If you need to prove you live at a specific location, for example, or that you qualify for a “locals discount”, then you may need to provide a utility bill.
In this situation, it’s possible that you could use your car insurance bill as a proof of residence. Your car insurance bill should list your address. Your car insurance bill also comes from a reputable, independent service provider – similar to utility bills. Ultimately, it’s up to the person checking your proof of residence documents to decide if car insurance counts as a utility bill for this purpose.
Of course, many drivers don’t receive a specific car insurance bill: they just have money deducted from their account monthly. Your mileage may vary.
The DMV May Request Two Utility Bills Along with One or More Forms of ID
The most common reason to wonder whether or not to use car insurance as a utility bill is when someone requests a utility bill as proof of residence.
In many states, the DMV or another government agency, for example, will require an individual to prove where they live by presenting two utility bills along with one or more forms of valid, government-issued photo ID.
In this situation, you may be able to substitute a car insurance document as a utility bill. Again, your mileage may vary, and it’s up to the discretion of the person who ultimately verifies your residence documentation.
Some things to consider when confirming your legal address with the DMV or another government organization include:
You Can Use Multiple Documents to Prove your Residence: The most common documents to use to prove you reside at a specific address include your most recent gas, electric, and/or water bill. Depending on your situation, you may also be able to use a bank statement, tax forms, mortgage payment document, a rental agreement, or similar documentation.
Common Problems with Documentation: If you’re having trouble finding documents to prove your residence, then you’re not alone. Some people don’t pay their own utility bills, for example, or your utility bills may be in another family member’s name. In this case, you may be able to substitute a car payment or car insurance document instead. Again, the final discretion lies with the individual verifying your identity.
You Can Get Car Insurance Even If You Don’t Own a Vehicle: There’s something called non-owner car insurance that some drivers choose to get. This car insurance protects you when driving someone else’s vehicle or renting a vehicle. If you don’t own a car but frequently drive someone else’s, then you may want this extra layer of protection. A non-owner car insurance policy may also be able to be used as proof of residence.
Car insurance payments and utility bills have several things in common. Both are paid on a regular basis. Car insurance payments are not considered utility bills. However, you may still be able to use your car insurance documentation to prove your residence – say, if you need utility bills to prove your residence at the DMV, a bank, or a government organization.