How can I deduct the contributions for my car insurance?

The 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 contribution 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 considered property insurance. Comprehensive cover cannot be deducted by private individuals for tax purposes.

If you want to declare at least the share for motor vehicle liability insurance in your tax return, you basically have two options.

Deduct motor vehicle insurance contributions 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 primary workplace and for journeys home as part of maintaining a second household, and you settle these journeys for tax purposes using the commuter allowance, the commuter allowance also covers the proportional liability insurance contribution. However, the tax authorities are generous here: You are allowed to deduct the insurance contribution in full as special expenses for simplification purposes (R 10.5 EStR).