Is moving from California to Indianapolis a good idea for me? (Lafayette: 2013, health insurance)

[49erfan916]

So I shouldn't move to Indy from cali?

[popcorn247]

I moved back home to Indiana after living in south Florida (Miami area) for 43 years. The COL is so much lower in Indiana. Insurance (home & auto) is a fraction of the cost. Food and housing is cheaper up here. People are much more friendly, MUCH better drivers, politeness is the norm, much less crime. Life is so much better for me than the crime ridden, crazy, rude, aggressive drivers, outrageously expensive insurance and hurricanes to be dealt with in Florida. I know you were referring to moving from California, but I wanted to put in my two cents worth regarding life in the Midwest. Best of luck to you!

[Pincho-toot]

Originally Posted by 49erfan916

So I shouldn't move to Indy from cali?

Take a trip to Indy and explore, hun. Some people think I am crazy for moving from the South to MN, but I love it here it's pure perfection IMO. Btw it's 0 degrees now and I love it. People overhype the cold they act like any temp under 30 is brutal. I am gonna enjoy my cold Christmas and going ice skating. Indianapolis is a lot warmer than up here but you will experience all 4 seasons unlike most of CA. I would never wanna live in California myself. If you wanna change of scenery it's always worth it, but be wise and responsible.

Merry Christmas btw.

[MortonR]

I have lived in Indianapolis, where I grew up, southeast Wisconsin, Northern California and Florida.

Each had its pluses and minuses, none were/are perfect.

For what it’s worth, the cold in WI can suck, but just like the heat in FL, you dress for it.

RM

[ndindy]

Originally Posted by NewHomer556

California is soooooo much more expensive than Indiana. Everything from gas prices, to electricity, insurance, taxes, housing etc.
there isn't anything to debate about that. The difference is so stark you can't suggest otherwise in a rational way.
The quality of life in Indiana is much better and my happiness level has gone up big time since moving here from California 2 years ago. No regrets.

I am not trying to challenge anyone on the forum, but outside of housing, I am not sure how people save so much money from California to Indiana.
Car insurance--I pay $200 less per year to insure a '16 and '17 Lexus in California.
Health insurance--the insurance market is much larger in California, so overall plans on the state exchanges and the portion people pay for employment based insurance is lower than the national average in California. I haven't paid this little for health insurance in Indiana since the late 90s. And the coverage is excellent in California.
My $700K house in San Diego is less to insure than my $350K house in Carmel.
Gas prices, Electricity, water.....gas is pricey, electricity is more per kilowatt hour, water, probably more.
Taxes: the property tax rates are both 1%, but Indiana can have special assessments, and if it's not your primary home, or a rental, you will pay 2% of the assessed value. In California, it's at 1 to 1.25, and California has caps on how much it can raise your property taxes per year.
State taxes: no question the state of Indiana has a lower tax rate overall, but Indiana has locality taxes that on average, are 7% of your income....starting from $0. You wont even start to pay a 7% tax rate in California until your income goes above $105,000.

Some of this is subjective....car insurance, health insurance, homeowners insurance can range based on where you work, where you live, the car you drive, ect. State taxes can be more than Indiana, but for those with incomes below $100K, I would challenge anyone to compare a W2 from Indiana to California, add it up and see who paid more.

As for housing, I think we can all agree California housing is pricey and a major issue of affecting affordability.

[ImmerLernen]

Originally Posted by ndindy

I am not trying to challenge anyone on the forum, but outside of housing, I am not sure how people save so much money from California to Indiana.

As a potential transplant from California, I've been trying to get a handle on this myself.

Originally Posted by ndindy

Car insurance--I pay $200 less per year to insure a '16 and '17 Lexus in California.

This is easy enough to verify on one's own. Call your insurance carrier and get a quote.

Originally Posted by ndindy

Health insurance--the insurance market is much larger in California, so overall plans on the state exchanges and the portion people pay for employment based insurance is lower than the national average in California. I haven't paid this little for health insurance in Indiana since the late 90s. And the coverage is excellent in California.

I'm wondering about this and would be grateful to hear other people's experiences. We've never had anything but group insurance through employers, but if we relocate to the Indy area, we may be on our own (as a family of 4) for a while and would love to get a realistic idea what, for instance, a mid-level PPO plan would run us on a monthly basis.

Originally Posted by ndindy

My $700K house in San Diego is less to insure than my $350K house in Carmel.

Which house is bigger with higher-end materials? Since rebuild cost is probably the biggest factor in determining homeowner's insurance premiums, the Carmel house would be more expensive to insure if it's bigger/nicer, and especially if it's in a flood plain (which I doubt you have in San Diego). I've gotten quotes based on potential addresses, and that bigger/nicer thing seems to be the difference between SoCal and Indy.

Originally Posted by ndindy

...Indiana has locality taxes that on average, are 7% of your income....starting from $0.

7%? Really??? That sounds high, so I'm thinking that's a mistake. Did you mean .7%, maybe? I'd be grateful for some elaboration/clarification on this point.

[sheerbliss]

I work in Carmel. Local income tax reported on my W2 was 1.8% of my wages in Box 1. However, Indiana state sales tax is 7%.

Maybe repairs are cheaper here than in California. My new driveway (one-car) cost $3,000 for tearout and replacement with concrete. The new roof was $7,000 for a 1200 sf house.

[49erfan916]

Originally Posted by sheerbliss

I work in Carmel. Local income tax reported on my W2 was 1.8% of my wages in Box 1. However, Indiana state sales tax is 7%.

Maybe repairs are cheaper here than in California. My new driveway (one-car) cost $3,000 for tearout and replacement with concrete. The new roof was $7,000 for a 1200 sf house.

how low are your state taxes?

[sheerbliss]

State tax is 3.23% of AGI for everyone. My property tax (in Marion County) was less than 1% of my home's value.

[CAtoIndytransplant]

Originally Posted by ndindy

I am not trying to challenge anyone on the forum, but outside of housing, I am not sure how people save so much money from California to Indiana.
Car insurance--I pay $200 less per year to insure a '16 and '17 Lexus in California.
Health insurance--the insurance market is much larger in California, so overall plans on the state exchanges and the portion people pay for employment based insurance is lower than the national average in California. I haven't paid this little for health insurance in Indiana since the late 90s. And the coverage is excellent in California.
My $700K house in San Diego is less to insure than my $350K house in Carmel.
Gas prices, Electricity, water.....gas is pricey, electricity is more per kilowatt hour, water, probably more.
Taxes: the property tax rates are both 1%, but Indiana can have special assessments, and if it's not your primary home, or a rental, you will pay 2% of the assessed value. In California, it's at 1 to 1.25, and California has caps on how much it can raise your property taxes per year.
State taxes: no question the state of Indiana has a lower tax rate overall, but Indiana has locality taxes that on average, are 7% of your income....starting from $0. You wont even start to pay a 7% tax rate in California until your income goes above $105,000.

Some of this is subjective....car insurance, health insurance, homeowners insurance can range based on where you work, where you live, the car you drive, ect. State taxes can be more than Indiana, but for those with incomes below $100K, I would challenge anyone to compare a W2 from Indiana to California, add it up and see who paid more.

As for housing, I think we can all agree California housing is pricey and a major issue of affecting affordability.

highly doubt that. Especially after these epic wildfires California has been having.
Health insurance is highly variable so trying to claim your situation will be representative of everyone else is silly at best. My health insurance rates dropped 25% since moving to Indiana. My Car insurance dropped 50% and like most people I don't drive a Lexus so your example is a bad comparison. Income tax in Indiana is significantly lower than California. My income tax for the last year was 4% VS the 10% rate I was paying in California and mind you $105,000 in California is not that wealthy. Sales tax in Indiana is 7% VS 10%+ in most of California. My utilities are less, gasoline is $2.39 here VS $3+ in California, no toll roads, excise taxes are less, no bag taxes and no red light camera's. So Please don't discourage people from moving to Indiana with exaggerations and false statements.