Is car insurance tax deductible?

I had a car for the first time this year. Naturally, I also had car insurance for the first time ever. Is this deductible?

Answer
The answer to this question is, maybe! Car insurance is only tax deductible under certain circumstances.
If your vehicle is used for personal purposes or to commute back and forth from work, then your insurance is probably not tax deductible. However, if your car is used for business purposes, it may be tax deductible.
Keep in mind that there are other ways your car can help you save money on your taxes!
If you have gotten rid of your old clunker by way of donation, you can claim it as a charitable donation. You can also see if your state gives credit for alterations made to your car that reduce emissions or for driving electric and hybrid cars.
Your tax preparer or a tax professional is a great help in knowing what might be tax deductible. Many tax preparation programs have questions built in to determine if your vehicle expenses are tax deductible.
If you’re looking for ways to save money on your vehicle, try using the free Jerry app. Jerry compares insurance rates from the top 50 companies in under a minute, saving you time and money.
avatar
Shannon Martin
Answered on Jul 27, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free