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Do I have to pay sales tax on car insurance quotes? Do car insurance quotes include tax? This article will tell you what to expect to pay compared to your car insurance quote.
Paying Taxes On Car Insurance Quotes
Do car insurance quotes include tax? The saying is that the only things guaranteed in life are death and taxes. There are taxes on property, cars, income and even death. There are taxes for everything you buy. Luckily, services are still usually exempted from sales tax. When you pay your lawyer, he or she won’t charge you sales tax. The same holds true for insurance. The quotes you get should include any fees or taxes with them, if there are any.
What Taxes And Fees Should I Worry About?
So if I don’t have to pay sales tax, what should I worry about paying? Firstly, make sure there isn’t a producer fee. That is a fee some agents charge just to set up the policy. Since they get paid a commission, this usually isn’t necessary. If they insist, try and talk them down on the cost. Maybe they’ll take $50 instead of $200.
They may try to sell you on extra services you don’t need. They may try and convince you to buy more coverages than you need. You may not need renters or homeowners insurance. You may not need a separate roadside assistance package. Make sure you know what you’re getting before you sign.
Another thing is to double check the coverages. Do you just need liability? One time, I asked for the state minimum coverage and the agent set me up with more than state minimum. While that may be a good idea in some cases, I was a poor college student with 13+ year old car. I ended up spending more than $150 a month for liability. It was horrible! Make sure you know your numbers.
If you aren’t sure what you need, this article will help you know if you need full coverage.
Summary: Do I have to pay sales tax on car insurance quotes?
Do Car Insurance Quotes Include Tax? Although you may not have to worry about paying sales tax on auto insurance quotes, you need to be watchful of plenty of things. It isn’t enough to get one car insurance quote. Whatever you do, try and get at least 5-10 car insurance quotes. If you’re buying a car, try and get quotes before you buy it. It may take you a few hours to find a good rate. Whatever you do, don’t rush the process. You could end up spending $1,200 or more a year needlessly. If two hours of work saved you that, it would be like getting paid $600 an hour!
So far, Root Insurance has been the best that I have found. You can read more about them here!
Adam is a license Property and Casualty Insurance Agent for over two years in 25 States. He has worked with 10 different insurances companies. His interests include marketing, insurance, sales, and personal finance.