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 don't know if it's worth the trouble to keep detailed records of your car expenses to make the second method worthwhile.
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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 don't know if it's worth the trouble to keep detailed records of your car expenses to make the second method worthwhile.