(2023) How can I deduct the contributions for my car insurance?

Contributions to motor vehicle liability insurance can be declared in the tax return; they are deductible as special expenses under pension expenses. However, the portion of the premium relating to comprehensive insurance is not recognised by the tax office.

The reason: Only policies that cover the taxpayer's personal life risks are considered and thus fall under the category of "other pension expenses". Partial or fully comprehensive insurance, on the other hand, is classified as property insurance. Comprehensive cover cannot be deducted by private individuals for tax purposes.

If you wish to declare at least the portion for motor liability insurance in your tax return, you generally have two options.

Deduct motor insurance premium as special expenses or business expenses

Contributions to motor liability insurance are generally special expenses if they are neither business expenses nor business-related expenses.

If you use the vehicle for journeys between your home and your primary place of work and for journeys home as part of a second household and these journeys are taxed using the commuter allowance, the commuter allowance also covers the proportional liability insurance premium. However, the tax authorities are generous here: You are allowed to deduct the insurance premium in full as special expenses for simplification purposes (R 10.5 EStR).