How can I claim my car insurance on my taxes?

I'm filing my taxes. Are my car insurance premiums tax deductible? Would I be able to write them off?

Unless you use your vehicle for business purposes, you can’t write off or deduct your car insurance premiums. When you insure a car for business use and only use it for business, you can write off any expenses related to it. This includes:
  • Car insurance
  • Gas
  • Maintenance
  • Mileage (56 cents per mile)
If you use your car partially for business and partially for personal use, you can deduct a percentage of your car insurance that covers the business use. If it’s a 50/50 split, you could write off 50% of your car insurance premiums or expenses.
However, if you’re using your vehicle for commuting to and from work, it would not count as business use. If your company reimburses you for mileage or other expenses, you also can’t deduct any car-related expenses from your taxes.
If you believe your car insurance qualifies for a tax write-off, you may want to consult an accountant or tax specialist. They can provide you with more details and how to claim your car insurance premium on your taxes.
If you can’t get a tax write-off, you still have another way to save money: shopping around for car insurance. Use the Jerry app to compare quotes from over 50 insurance providers to get the best rate possible.
Emily Maracle
Answered on Oct 19, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.

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