Accident insurance tax-deductible: How to cleverly optimise your tax liability
31 Mar 2025
11
Minutes
Katrin Straub
CEO at nextsure
An accident can happen quickly, but did you know that your accident insurance may be tax-deductible? Many taxpayers miss out on real savings because they are unaware of the possibilities. Find out how to correctly declare your contributions and reduce your financial burden.
The topic in brief and concise terms
Contributions to private accident insurance can be deducted as precautionary expenses up to maximum amounts of 1,900 euros (for employees) or 2,800 euros (for self-employed), provided they are not exhausted by health and nursing care insurance.
Pure occupational accident insurances can be deducted without limit as advertising costs (for employees) or operating expenses (for self-employed individuals).
For mixed policies (private and professional), a 50/50 split of contributions between pension expenses and advertising expenses is often possible.
Understanding the Tax Deductibility of Accident Insurance: The Basics
Contributions to your private accident insurance can generally be claimed as other insurance expenses in the tax return. This is regulated by Paragraph ten of the Income Tax Act (EStG). It is crucial that you have earned taxable income in the relevant tax year and that a valid insurance contract exists. However, the deductibility is limited by maximum amounts, which are often already reached by other insurances. This distinction is the first step towards optimising your tax.
Maximum amounts for retirement expenses: This is how much you can deduct at most
There are annual limits for other precautionary expenses, which include private accident insurance. Employees, civil servants, and pensioners can claim up to one thousand nine hundred euros. For self-employed individuals and freelancers, this amount is two thousand eight hundred euros per year. These sums are often already used up by contributions to health and nursing care insurance. Therefore, an exact examination of your deductible insurance is essential. It is important to know how these limits affect your deduction possibilities.
Private versus professional accident insurance: Recognize and utilize the difference
The tax treatment of your accident insurance largely depends on its purpose. A purely private accident insurance that covers leisure risks falls under the aforementioned precautionary expenses. However, if the policy covers solely occupational risks, employees can claim the contributions as advertising expenses on Form N. Self-employed individuals classify these as business expenses on Form EÜR. The advantage of advertising expenses: There is no statutory maximum amount. Many policies cover both private and occupational risks; here, a split is possible. Correct allocation is crucial for maximum tax savings.
Mixed accident insurance: Wisely distribute contributions
If your accident insurance covers both private and professional risks, the contributions can be split. Often, the tax office accepts a flat-rate division of fifty percent as advertising expenses and fifty percent as special expenses for simplification reasons. Simply enclose the contribution invoice with your tax return for this purpose. If you require a more precise allocation, for example, if the professional share is higher than fifty percent, you should request a certificate from your insurer. This approach can optimize your tax relief through accident insurance. The next consideration concerns the correct entry in the tax forms.
Accident insurance in the tax return: This is where you enter your contributions
Correct placement of your insurance contributions in the tax return is crucial. Contributions to private accident insurance belong in the supplementary pension expenses form, typically in lines 46 to 50. If it is an occupational accident insurance, employees record the costs as income-related expenses in the Anlage N form. The self-employed record these as business expenses in the Anlage EÜR form. For a combined policy, the entry is made proportionately in the respective forms. Our expert tip: Use tax software, which usually guides you correctly through the forms. Careful documentation helps prevent errors and avoids inquiries from the tax office.
Here is an overview of where the contributions belong:
Private accident insurance: Supplementary pension expenses form (lines 46-50)
Occupational accident insurance (employees): Anlage N (income-related expenses)
Occupational accident insurance (self-employed): Anlage EÜR (business expenses)
Combined accident insurance: Proportionately in the respective forms
Once the contributions are correctly recorded, the question arises about the tax treatment of benefits.
Benefits from accident insurance: What is tax-free, what must be taxed?
Not only contributions but also benefits from accident insurance have tax aspects. Capital benefits, such as a disability compensation from a private accident insurance, are generally tax-free. Pension payments from statutory accident insurance also remain tax-free. However, with a private accident pension, the so-called gain portion must be taxed. The amount of this portion depends on the age at the start of the pension. It is important to know these differences for the event. An overview of your accident insurance benefits can provide clarity here. But what applies to special cases like child accident insurance?
Special cases and expert tips: children's accident insurance and proof obligations
Contributions for a children's accident insurance can also be deducted as preventative expenses, as long as the maximum limits are not exceeded. For the deductibility of your accident insurance contributions, the tax office usually does not require immediate documentation. However, it can request proof. Your insurer will provide you with a certificate of the paid contributions for the tax office upon request (tax office confirmation). Our expert tip: Retain your insurance documents and contribution proofs for at least the duration of the appeal period of your tax assessments. This safeguards you in case of inquiries. Good organisation of your documents is invaluable here.
Important points regarding proof of obligation:
The tax office does not always require immediate documentation.
The insurer issues a tax office confirmation.
For mixed policies with over fifty percent employment coverage, a certificate is advisable.
Store documents carefully for at least four years.
This detailed knowledge complements your understanding of tax deductibility.
Accident costs after a work-related accident: Review additional deduction options
Conclusion: Use the tax benefits of accident insurance with knowledge and care
More useful links
Bundesfinanzministerium provides detailed information on tax regulations that may be relevant for the deductibility of accident insurance contributions.
German Statutory Accident Insurance (DGUV) provides comprehensive information about statutory accident insurance and its benefits.
Federal Statistical Office (Destatis) provides official statistics on fatal workplace accidents in Germany.
Federal Office for Social Security offers an overview of accident insurance in the context of social security systems.
Wikipedia provides a comprehensive introduction and historical development of statutory accident insurance in Germany.
Vereinigte Lohnsteuerhilfe e.V. (VLH) explains which insurances are tax-deductible and gives practical advice on tax returns.
Lohnsteuer kompakt provides specific information on the tax treatment of accident insurance and its deduction possibilities.
Finanztip offers consumer tips on special expenses that can be claimed in the tax return, including relevant insurances.
Consumer Advice Centre evaluates the advisability of private accident insurance from a consumer perspective and provides guidance.
IWW Institute provides specialist information on how accident insurance contributions can be claimed in the income tax return.
FAQ
What requirements must be met for my accident insurance to be tax-deductible?
You must have earned taxable income during the fiscal year, have a current contract, and the maximum amounts for provisions must not yet be utilized by other insurances (primarily health and care insurance).
Do I need to submit proof of accident insurance with my tax return?
You usually don't need to submit proof immediately. However, the tax office can request it. You will receive a contribution certificate from your insurer.
Can I also claim accident insurance for my child on my taxes?
Yes, contributions to a child accident insurance policy can be claimed as preventative expenses, provided the applicable limits have not yet been exceeded.
What happens if my accident insurance covers both private and professional risks?
In this case, the contributions can be divided. Often a flat 50/50 split between advertising costs/business expenses and pension expenses is accepted by the tax office. For a more precise division, you may need a certificate from the insurer.
Are accident costs incurred on my way to work also tax-deductible?
Yes, even self-borne accident costs (e.g. repairs) incurred on the direct route to work and not covered by insurance can be deducted as business expenses.
Is it even worth mentioning the accident insurance if the maximum amounts are quickly reached?
It is always advisable to list all deductible items. Even if the maximum amount for precautionary expenses is reached, a professional portion of accident insurance can be deducted as business expenses without limit and reduce your tax burden.
