Private liability insurance tax-deductible: Where to enter your premiums and save tax
29.05.25
12
Minutes
Katrin Straub
Managing Director at nextsure
Did you know that you can deduct your personal liability insurance from your taxes? Many taxpayers are missing out on real money here. Find out how to enter your contributions correctly in your tax return and reduce your tax burden.
The topic in brief and concise terms
Contributions to private liability insurance can be claimed as special expenses in the "Vorsorgeaufwand" appendix (lines 46-50, often line 48) up to maximum amounts of EUR 1,900 (employees) or EUR 2,800 (self-employed persons).
In addition to personal liability insurance, other liability insurance policies (e.g. pet owner’s liability, motor vehicle liability) and pension provision expenses (e.g. accident insurance, income protection insurance) can also be claimed for tax purposes.
Proof of contributions paid (e.g. contribution certificate, copy of the contract with bank statements) only needs to be submitted on request by the tax office (document retention requirement).
Quick Facts: The most important facts about the tax deductibility of your personal liability insurance
Private liability insurance premiums are tax-deductible as special expenses. You enter these in the “Vorsorgeaufwand” section of your tax return. For employees and retirees, a maximum amount of one thousand nine hundred euros applies to other provision expenses. Self-employed individuals can claim up to two thousand eight hundred euros. These amounts also include other insurance contributions such as health and long-term care insurance contributions.
Practical section: How to enter your liability insurance correctly
To claim your private liability insurance for tax purposes, you need the form “Anlage Vorsorgeaufwand”. The entry is made in the section “Further other precautionary expenses”. Specifically, lines 46 to 50 are relevant, and line 48 is often explicitly mentioned. If you have several liability insurances, such as pet owner liability insurance, add the annual premiums. For example: your private liability insurance costs sixty euros a year, your dog liability insurance eighty euros. You then enter the total of one hundred and forty euros. You can also find an overview of deductible insurance policies with us. Make sure to enter only contributions that have actually been paid. As a rule, the tax office accepts the contribution certificate from your insurer. Alternatively, a copy of the insurance contract together with bank statements is often sufficient as proof of payment.
Here is a list of the typical liability insurances you can declare:
Private liability insurance
Motor vehicle liability insurance (not comprehensive cover for employees)
Pet owner liability insurance (e.g. for dogs or horses)
House and landowners’ liability insurance
Builders’ liability insurance
Water pollution liability insurance
Correctly declaring them secures you the maximum tax saving within the limits. For married couples filing a joint tax return, the respective maximum amounts are added together. If the maximum amount for an employed partner is one thousand nine hundred euros and for the self-employed partner two thousand eight hundred euros, the joint maximum amount is four thousand seven hundred euros. It is important to understand what a liability insurance is needed for, so that you can also properly assess the tax benefit.
Expert-level depth: understanding maximum amounts, evidence and legal foundations
Contributions to private liability insurance are classed as other precautionary expenses pursuant to Section 10(1) No. 3a of the Income Tax Act (EStG). However, the deduction is capped. The maximum amount for other precautionary expenses is EUR 1,900 for employees, civil servants and pensioners. For self-employed individuals who bear their health insurance contributions in full themselves, a higher limit of EUR 2,800 applies. This maximum amount is often already used up by contributions to basic health insurance and statutory long-term care insurance. In such cases, declaring private liability insurance no longer has any tax effect. Nevertheless, you should always declare the contributions, as the tax office checks whether there is still any room available. Find out more about where insurance policies are entered in the tax return.
Our expert tip: Keep your insurance documents and proof of payment for at least as long as the objection period after receiving the tax assessment. For several years now, there has been a retention requirement for supporting documents, which means that evidence only has to be submitted on the tax office's explicit request. You usually receive an annual contribution certificate automatically from your insurer. Private liability insurance is an important component of your cover.
Further deductible insurance policies and special cases
In addition to private liability insurance, there are other policies whose contributions you can claim as retirement provision expenses. These include, for example, accident insurance, term life insurance and occupational disability insurance. Contributions to unemployment insurance also fall into this category. For certain professionally related insurance policies, such as pure professional liability insurance, a deduction as income-related expenses (Schedule N for employees) or operating expenses (for the self-employed) may be possible under certain circumstances. This can be more advantageous, as different upper limits apply here. For combined policies (professional and private liability), check the possibility of apportionment. In many cases, the insurer can certify the professional share. The connection between insurance and tax is a complex topic. Motor third-party liability insurance is deductible as a retirement provision expense, but not comprehensive insurance for employees. Under certain circumstances, self-employed people can also claim comprehensive insurance as operating expenses if the vehicle is used for business purposes.
The following insurances are typically deductible as retirement provision expenses (special expenses), provided the maximum amounts are not exceeded:
Private liability insurance
Pet owner's liability insurance
Accident insurance
Term life insurance
Occupational disability insurance (often as special expense)
Statutory and private basic health and long-term care insurance (are taken into account first)
Motor third-party liability share
Unemployment insurance
It is always advisable to review your individual situation, as the tax effect depends on many factors. Knowing how much liability insurance costs helps with budget planning and assessing the tax advantage.
When is it particularly worth mentioning private liability insurance?
Declaring personal liability insurance on your tax return is always worthwhile when the maximum amount for other provision expenses (one thousand nine hundred or two thousand eight hundred euros) has not yet been fully used up by other insurance policies that take priority, such as basic health and long-term care insurance. Low earners, trainees or pensioners often benefit in particular, as their social security contributions may be lower and therefore leave more room to deduct other insurance policies such as personal liability insurance. Even if you pay only a small annual premium for your personal liability insurance, for example fifty euros, it may still be worth declaring it. Every euro that is recognised reduces your taxable income. Even if the contributions make no difference, declaring them does not disadvantage you. The question of whether children are covered under the personal liability insurance is not directly tax-relevant, but it does affect the necessity and scope of the insurance cover, the premiums for which you can then claim. The ability to deduct it is an additional incentive to ensure adequate cover.
nextsure: Your partner for comprehensive protection and advice
As a digital insurance portal, our mission at nextsure is to offer you tailored and easy-to-understand insurance solutions. We understand that the insurance jungle and tax-related aspects can be complex. That is why we place great value on expert advice and transparent information, so that you are not only optimally insured, but can also make use of financial benefits such as the tax deductibility of your private liability insurance. Our expertise in the field of niche insurance enables us to find the right cover even for special needs. We support you in analysing your insurance situation and identifying potential for optimisation. Damage can happen quickly, and the question of whether the private liability insurance premium increases after a claim is just one aspect. What matters more is to be well insured in the first place.
Request your individual risk analysis now: Have your insurance situation reviewed free of charge and receive concrete suggestions for optimisation.
More useful links
Wikipedia provides a comprehensive overview of private liability insurance in Germany.
The Federal Ministry of Finance provides an official document on the deduction of retirement provision expenses as special expenses.
The NRW tax office provides information on provision expenses as special expenses for private individuals.
The VLH (Vereinigte Lohnsteuerhilfe e.V.) provides information on which insurance policies can be claimed as tax deductions.
The WirtschaftsWoche (WiWo) examines in an article which insurance policies can be declared in the tax return.
FAQ
In which line of the tax return should private liability insurance be entered?
The contributions to private liability insurance belong in the Vorsorgeaufwand annex, in lines 46 to 50 under “Other additional provision expenses”. Line 48 is often explicitly mentioned.
What is the maximum amount that can be deducted for private liability insurance?
For other precautionary expenses, which include private liability insurance, an annual maximum amount of EUR 1,900 applies for employees, civil servants and pensioners. For self-employed people, this amount is EUR 2,800. Please note that contributions to health and long-term care insurance are taken into account first and may already use up this maximum amount.
Do I have to submit proof of liability insurance directly with the tax return?
No, for several years there has been a requirement to retain supporting documents. This means you only need to keep the records (e.g. contribution statement, bank statements) and submit them only at the explicit request of the tax office.
Is it always worth declaring private liability insurance on your tax return?
It is worthwhile declaring it if the maximum amount for other provision expenses has not yet been used up by other insurance policies (in particular health and long-term care insurance). As there are no disadvantages, declaring it is generally recommended.
Are premiums for dog liability insurance also tax-deductible?
Yes, contributions for dog liability insurance can also be entered as other precautionary expenses in the Vorsorgeaufwand section, just like private liability insurance.
What happens if I have multiple liability insurance policies?
If you have several liability insurances (e.g. private, motor vehicle and pet owner liability), add together the annual premiums of all deductible liability insurances and enter the total in the corresponding line of the Vorsorgeaufwand schedule.
