Is an Auto Insurance Bill a Utility Bill?

Last Updated on June 30, 2021

You pay auto insurance premiums every month to keep your policy active – just like you pay your electric bill every month to keep your lights on. But is an auto insurance bill a utility bill?

Although most auto insurance is billed monthly, auto insurance is not considered a utility bill. It’s a contract between an insurer and a car owner. You pay the insurance company in exchange for covering your risk, making auto insurance different from a utility.Is An Auto Insurance Bill a Utility Bill

Today, we’re explaining everything you need to know about the differences and similarities between auto insurance bills and utility bills.

Table of Contents:

How Car Insurance Works

Car insurance is a contract between you and your insurance company. Specifically, it’s an indemnity contract. Your insurer agrees to protect the owner from financial loss if certain unexpected events occur – like a collision or house fire.

You pay monthly premiums to your insurance company, and your insurance company covers your risk in exchange. Your insurance company protects you from financial loss if unexpected events occur.

Almost every state requires you to carry car insurance. States have minimum required car insurance limits. If you do not have car insurance that meets those limits, then you cannot legally drive on public roads.

How Utility Bills Work

Utility bills are invoices you pay in exchange for receiving certain services at your home.

In exchange for receiving trash, water, sewer, electricity, cable, internet, and gas services at home, for example, you must pay a utility bill every month.

‘Utilities’ can be defined as anything that keeps a property running smoothly. You need water and sewer utilities, for example, to keep your home in living condition. Although cable and internet are optional, they also keep your home in livable condition.

Auto Insurance Versus Utility Bills

For most people, utility bills and auto insurance premiums are unavoidable expenses. Most people pay utility bills and auto insurance premiums monthly.

If you want to continue to legally drive, and if you want to keep your home in living condition, then you must pay your auto insurance premiums and utility bills.

Although auto insurance bills and utility bills have several things in common, they’re considered different things. Some of the differences between utility bills and auto insurance premiums include:

  • Utilities are services provided by the local government or private businesses in your area; these utilities help you keep your house up and running, allowing you to live comfortably
  • Common utility bills include invoices for electricity, gas, natural gas, trash, water, and sewer
  • Auto insurance, meanwhile, is a financial contract; you pay your insurance company in exchange for accepting the risk of unexpected damages
  • You pay monthly insurance installments to maintain your insurance coverage; however, even though you make monthly payments, your car insurance is not considered a utility
  • Most people consider electricity bills and similar invoices to be utilities, while auto insurance is considered to be part of the cost of owning a vehicle; they’re two different things

Although both auto insurance bills and utility bills need to be paid monthly, auto insurance and utilities are two different things.

Can You Verify Your Address With an Auto Insurance Bill?

If you’re curious about using your auto insurance invoice as a utility bill, then you’ve probably been asked to verify your address.

A bank, government authority, or someone else, for example, may request a utility bill to verify your address. You may need to provide a utility bill for your address to obtain a loan, for example.

You wouldn’t buy utilities (like electricity or internet) for a home you don’t own, which is why utility bills are an effective form of proof of address verification.

In this case, most people would not consider auto insurance as a utility bill for proof of address verification.

Your auto insurance bill could list your address, and it’s possible some will use it for proof of address verification purposes. However, most formal entities – like banks or government authorities – need a utility bill to prove your address and will not accept an auto insurance bill.

What Is Considered a Utility Bill?

Car insurance is not considered a utility bill for proof of address verification. However, you should be able to find plenty of other utility bills around your home, through your online accounts, or elsewhere.

Here are some of the common utility bills you can use for proof of address verification purposes:

Electricity and Gas: Your electric and gas utility bills can prove your address. Your house needs electricity and gas to operate. They’re considered public utility bills. Your house uses electricity and gas to run everything from your TV to your water heater. If someone asks for your utility bill, then you should be able to submit your electricity or gas invoice to prove your address.

Water: Your household needs water to operate smoothly. You may pay a monthly water bill to your local government. You pay a monthly fee to receive water at your home. The water company is a public utility, and your water bill will be considered a utility bill for proof of address verification purposes.

Cable, Internet, and Phone Service: Telecommunications bills are considered utilities. If you pay for cable, internet, or phone service at your home every month, then you can use your latest bill to prove your address.

Other Services: Depending on your area, you could pay for natural gas, trash, recycling, sewer, and other utilities. An invoice you receive from any of these utilities will count as a utility bill – even if your car insurance does not count as a utility bill.

Final Word – Are Auto Insurance Bills Utility Bills?

Auto insurance bills are not considered utility bills. If you need to prove your address via a utility bill, then you will not be able to use your auto insurance bill as proof.

Instead, most lenders, banks, government authorities, and other entities require you to submit a valid utility bill to prove your address. Common utility bills include electric and gas invoices, phone and internet bills, water company payments, or garbage payments, among others.

James Shaffer
James Shaffer James Shaffer is a writer for and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
Back to Top