You may be missing discounts and tax deductions for your insurance! Ask your accountant or agent today!

by Nick on September 27, 2014

As a car owner, you are probably aware of the requirements under state law for insurance on your vehicle, and you may have a basic understanding of what that insurance covers. However, there are a few little-known facts you may not have been aware of that can actually save you money.

Tax Deductions

One little-known fact about auto insurance is that using your car for business entitles you to deduct auto insurance on your tax returns at the end of the year. You must deduct only the percentage of your insurance cost that equals the percentage you use your vehicle for business, however. For example, if you use your personal vehicle for business use 25 percent of the time over the year, you can deduct 25 percent of your auto insurance costs. Be sure to discuss this deduction with your tax advisor at the end of the year.

Occupation Discount

Some insurance companies offer discounts to those who work in certain professions. In most cases, these are professions that have been determined low-risk because statistics show they exercise less risky driving behaviors than those who perform other jobs. Professions that are often offered occupation discounts include:

• Engineers and Scientists
• Teachers and Professors
• First Responders
• Nurses
• Pilots
• Certified Public Accountants

Personal Items in Vehicle

Personal items left in a vehicle are not normally covered by automobile insurance. Instead, they are often covered by homeowner’s insurance. Items like GPS units, MP3 players and cellphones should be listed on your homeowner’s policy. Be sure to take a picture of the item and store it in a safe place should it be stolen from the vehicle.

Low-Risk Vehicle

Purchasing a vehicle that the insurance company determines is low-risk is another way to keep insurance premiums down. Surprisingly, low-risk vehicles are not necessarily determined by the size of the vehicle. Insurance companies lower premiums if the vehicle has less horsepower or is less likely to be stolen than others. According to Consumer Reports, the Ford F-250 pickup and the Cadillac Escalade had the highest theft rates between 2010 and 2012. The Jeep Compass and Toyota Sienna had the lowest theft rates, which may put them in the low-risk vehicle category.

These relatively unknown facts about auto insurance could help you save money and prevent problems in the future. Click here for more facts about auto insurance and information on how to save money on your insurance needs.

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