Can You Deduct Auto Insurance Premiums? 
I am assuming this question relates to whether or not a policyholder can deduct their auto insurance premiums on their Federal or state income taxes . Unless the car is used for business purposes , the answer is `` no '' . However , if you use your car for business purposes , and your employer does not reimburse you for the business use of your car , there is a way to deduct a portion of your auto insurance premium . The IRS allows two ways to deduct expenses for the non-reimbursed use of your personal car . The first method is the mileage method . The IRS sets a mileage allowance every year , and that allowance is meant to cover fuel , wear and tear , maintenance , insurance , and other expenses . The second method is to keep track of all of the expenses related to your car , and then pro-rate those expenses by the amount of business use of your car . My employer reimburses me for the business use of my car using the mileage method . I do n't know if it 's worth the trouble to keep detailed records of your car expenses to make the second method worthwhile . 