How can I find out if auto insurance companies that sell coverage online pay any taxes to the states?
If they're an admitted carrier, they would have to; The numbers you're looking for should be in their state filing(?) I think, never gone looking for that. For most states it's a flat percentage of premium written; other states (KY,FL) it's more involved.
Yeah MBR: Premium tax is a back office thing. In Ohio it's 2% of earned premium paid monthly. It's a home office accounting thing, most agents probably don't know.
If they're an admitted carrier, they would have to; The numbers you're looking for should be in their state filing(?) I think, never gone looking for that. For most states it's a flat percentage of premium written; other states (KY,FL) it's more involved.
Yeah MBR: Premium tax is a back office thing. In Ohio it's 2% of earned premium paid monthly. It's a home office accounting thing, most agents probably don't know.
References :
http://ohio-insurance-forum.blogspot. com/
Well, I don't know of any states where they CHARGE a sales tax on insurance premium – and I'm not familiar enough with the accounting end of the deal to know what other business taxes they would pay.
The only way YOU, the END BUYER should see a tax, is if it's a "nonadmitted" carrier – and then you'll have to pay "surplus lines tax" and "stamping fee" and possibly an inspection fee.
But buying insurance online is just ASKING to get scammed. You're much better off with a local agent.
References :
agent, 21+ years