If you use your car for business purposes, you may be eligible to deduct your car insurance premium on your tax return. This includes using your car to pick up or deliver business supplies, driving to visit customers, or driving to a business conference. However, simply getting to and from work doesn't count as a business-related purpose. Business owners and self-employed workers can write off their car insurance on their tax returns, but what about drivers who use their vehicles solely for personal purposes?Unfortunately, for this group of taxpayers, car insurance isn't tax-deductible.
However, if you use your car for business half the time, you can claim 50% of the annual car insurance costs from your taxes. Rideshare promotions generally give you coverage while the app is active and you're looking for a passenger, but they remove it once someone gets in your car; at that point, Uber or Lyft assumes responsibility. If you own a car that you use exclusively for business purposes, all costs associated with the vehicle, including premiums for gas, maintenance and insurance, are tax deductible. This means that you can write off all of your business-related car-related expenses on your taxes. I use my car for business purposes, but I don't know what I can write off as a business expense when it comes to insurance costs.
If you use your vehicle only for business purposes, you may find it easier to declare your taxes, since you won't have to calculate the division between your business and personal use. In conclusion, if you qualify, you can deduct all of your business-related car-related expenses, including your car insurance premium. Unless you're using your car for business purposes, however, you probably won't be eligible to deduct your car insurance premium on your tax return.
