The motor vehicle liability insurance is the only part of car insurance that can be deducted. It is explained why this is the case and how to correctly execute this.

The motor vehicle liability insurance is the only aspect of car insurance that can actually be deducted in the German tax return – and this is precisely why many seek a clear answer on how to correctly do this in the “Anlage Vorsorgeaufwand”. In practice, it is not only the contribution itself that counts, but also where it is recorded, what the tax office accepts, and which elements of the policy are immediately rejected. This short guide navigates through the key rules, points out specific lines, and helps to avoid typical mistakes, ensuring that the settlement for the year 2024 is simple and secure.

The motor vehicle liability can really be deducted! Check which line in the “Anlage Vorsorgeaufwand” it must be entered in to avoid doubts from the tax office

The motor vehicle liability insurance can be deducted in line 46 of the “Anlage Vorsorgeaufwand”, as it counts among private liability insurances. This line should be the starting point if one wishes to record their contribution correctly and without the risk of corrections. Only the actual amount paid is deducted, meaning after considering discounts and any reimbursements.

If a simple way is sought to quickly check whether the insurance is deductible, it should be ensured that it is exclusively a motor vehicle liability insurance without additional elements. Common additions like legal protection or comprehensive insurance are not part of the “Vorsorgeaufwand” and cannot be credited. In practice, this means that only the portion of the contribution that covers liability counts.

A good practice is to retain the document that confirms the annual motor vehicle liability contribution. Such proof facilitates the entry of data into the form and enables the tax office to quickly confirm the correctness of the settlement. This avoids later questions from the office and speeds up the processing of the declaration.

Line 45 or 46? Discover where the motor vehicle liability belongs and where other policies – and how to avoid mistakes in the 2025 settlement

The direct answer is – the motor vehicle liability is always entered in line 46, as this part of the form includes private insurances like liability and accident insurance. Line 45, on the other hand, relates to a completely different area, namely private disability insurances. This distinction is crucial, as any error can extend the processing time.

If one wishes to organize their policies, a brief overview can be helpful:

• Line 45 – private BU and EU (without Rürup),
• Line 46 – private liability (this is where the motor vehicle liability belongs), accident insurance, term life insurance, and, for example, property liability.

It is also worth knowing that the office does not classify property insurances in line 46. Protection against theft, fire, natural disasters, or comprehensive insurance is not considered “Vorsorgeaufwand”. If everything is bundled in the package, one should ask the insurer for a breakdown of the motor vehicle liability portion – only this part can be considered in the tax return.

Want to increase the tax refund? Check which elements of the motor vehicle liability are actually deductible – and what the tax office rejects without discussion

The shortest answer: only the pure motor vehicle liability contribution is deductible, after deducting discounts and reimbursements. All other elements of the package, even if they were added “incidentally”, are not deductible as special expenses. The office treats them as property insurances or legal protection, and these are not part of the “Vorsorgeaufwand”.

What cannot be deducted is just as important as what can be considered. Regardless of the situation, the tax office will automatically reject:

• Comprehensive insurance (partial or full),
• Legal protection insurance (except the part concerning labor law – this belongs to advertising expenses),
• Household insurance,
• Insurances against elemental damages.

Such policies do not serve personal security and therefore must not be entered in line 46. If one wants to maximize the refund, one should ensure that the amount entered in the form only concerns the motor vehicle liability. Sometimes insurers send documents where all contributions are combined. In such cases, one should not hesitate to request a breakdown into specific elements. This maximizes the potential of the deduction and maintains order in the documentation.

Beware of pitfalls! Is the motor vehicle liability contribution a private or professional expense? We provide hints on where the contribution should be classified to avoid corrections

If the car is used only privately, the motor vehicle liability is always a special expense and belongs to line 46. The situation changes if the vehicle is associated with professional activity. Then the contribution can be classified as advertising expenses or business expenses, depending on the type of income. This is important, as a wrong classification often leads to corrections by the office.

In practice, it looks like this: If the motor vehicle liability concerns a vehicle used for performing an activity or rental, the office will count this contribution as business expenses and not as special expenses. Only motor vehicle liability associated with private purposes remains in the “Anlage Vorsorgeaufwand”. This distinction can be confusing, so it is advisable to consider what purpose the car is actually used for.

It should also be noted that some insurances fall into the mixed area. If an accident insurance covers both private and professional life, half of the contribution can be considered as advertising expenses in the settlement. The remaining part belongs to line 46. This solution is accepted and facilitates a clear representation of the tax situation.

Want to deduct the motor vehicle liability without stress? See how it’s done step by step and get more back in the settlement!

Settling the motor vehicle liability contribution in Germany is easier than it seems – it is enough to know where to enter the respective data and which elements of the policy are actually deductible. To do this correctly:

• prepare a confirmation of the annual motor vehicle liability contribution indicating the amount after discounts and reimbursements,
• ensure that you only deduct the motor vehicle liability and not additional elements of the package (comprehensive, legal protection),
• open the Anlage Vorsorgeaufwand and go to line 46,
• enter only the part of the contribution that concerns motor vehicle liability,
• check if the car is used solely for private purposes – if also for professional purposes, the contribution may be accounted differently (as advertising expenses or business expenses),
• keep the documents to confirm the data in case of questions from the office.

If you want to complete everything faster and without stress, you should consider using a tax return app like Taxando, which guides you step by step through the entire process. This not only makes the settlement easier but also safer.