Tax return: car insurance deduction, when is it possible?

Is it possible to deduct car insurance from the capital tax return? The answer is: it depends. Let’s find out why.

The deduction of car insurance is only possible if you have the accessory guarantee relating to accidents to the driver. Let’s see how.

Car Insurance Deduction: How Does It Work?

Let’s say first of all that the deductions provided for tax returns do not include that relating to the cost incurred annually for the car liability policy.

So if you have taken out basic car insurance, therefore only the car liability compulsory by law, you are not entitled to any deduction nor 730.

Car insurance is deductible only if you have also subscribed to the driver’s accident policy, which is an ancillary and not mandatory guarantee.

In this case, you will be able to deduct 19% of the annual amount paid for the driver’s accident guarantee only, and not for the entire amount of your car insurance.

Attention! To be deductible, the policy must have as its object the risk of death or permanent disability of not less than 5%.

Furthermore, for this type of deduction, there is a maximum spending ceiling of € 530, which remains so even in the presence of several similar policies (for example the accident guarantee for the driver and a life insurance policy on the mortgage).

Driver accident guarantee: what is it?

Compulsory car insurance covers civil liability for driving motor vehicles, therefore the cases in which it is necessary to reimburse the damage caused to third parties by the insured in the event of an accident. This level of coverage does not include a whole series of situations that are no less dangerous and costly from an economic point of view. Precisely for this reason, there are several non-mandatory ancillary guarantees which, against an additional cost, protect the insured in certain circumstances.

These include the driver’s accident insurance policy, which we recommend since auto liability insurance alone does not cover the physical damage suffered by the insured, but only those that he while driving causes to other vehicles or people. It is, therefore, better to be protected (and adequately compensated) in the event of death, partial or total, temporary or permanent disability.

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