Can You Deduct Car Insurance?
Can you deduct car insurance from your taxes? This is a question that a lot of people have been asking. With the recent news that the government may be considering eliminating the deduction for many things, it is understandable if you are concerned about being able to deduct car insurance from your taxes. The good news is that if you can do certain things you can still get the same amount of deductions as you were previously able to. You just have to know what to do.
The first thing you should do if you are concerned about being able to deduct your car insurance is to get a copy of your current policy. Look at it and see exactly what is being covered. If you can state that you have replaced your car because of theft or an accident then you can definitely deduct that money from your taxes. This can be an expensive part of the insurance premium, so you want to make sure you are not paying too much out.
Another thing to consider is the value of the deductible that you choose. The deductible will be something that you have to pay before your insurance company will start paying off on your claim. You can save money this way but it is also important to remember that the higher the deductible is the more money you will have to come out of pocket before your car insurance kicks in.
hyundai veloster insurance cost is easy enough to shop around and get lower quotes if you are willing to do some comparison shopping. Go online and visit various websites that give you quotes for the same type of insurance policy. When you are comparing quotes be sure to look at what all covers your car. For instance, you may be carrying a comprehensive policy with your insurance company, but you may also be carrying liability insurance. There may also be separate collision and comprehensive policies that you need to add to your total policy.
If you have to pay the deductible out of your pocket before your insurance kicks in you will be left with very little left over. Car insurance is primarily used as a financial tool, so it makes sense to get the most you can for your money. Being able to deduct your car insurance premium from your taxes can save you hundreds of dollars a year. If you are able to take a larger deductible then you will also save money each month on insurance premiums.
If you cannot pay the entire deductible out of your pocket then you should consider raising your deductible. However, you must make sure that your insurance is at a good rate before you raise your deductible. Raising your deductible can put you in a financial bind. Be sure that your insurance is current on your policy before you consider raising your deductible.
On occasion you will be able to deduct car insurance from your mortgage payment. This is something that tends to only affect people who own their car outright. If you are still paying your mortgage and are thinking about insuring your car through the mortgage then ask your lender if they would be willing to let you deduct the insurance from your mortgage payment. Many lenders are willing to allow you to do this, but it does tend to bring up a maintenance fee that you have to pay on top of what you already pay on your insurance premiums. You should check with your lender to see if they would be willing to waive this particular fee.
If you cannot make any of these determinations then the next question that you need to ask yourself is, "Are you trying to save money?" Deductible savings can be huge depending on how much you drive. A person who only gets one accident and has no tickets on his or her record can save a tremendous amount of money each year. However, if you are a person who drives all the time and always has accidents then you may not be saving as much money as you could be. Your insurance company may be able to help you reduce your deductible if you explain to them your circumstances.