Company car insurance — OC, AC, GAP in Poland (2026)

A company car costs money — and not just to buy. One regular expense is insurance. Premiums for OC, AC, GAP, and NNW have different accounting treatment: some are fully deductible, others are limited by the vehicle's value cap. In this article we break down the deduction rules in force in 2026, without the myth that the AC limit depends on CO₂ emissions.

OC — 100% deductible, no limit

OC (third-party liability insurance) is a deductible cost in full. The 150 000 zł vehicle value limit that restricts AC does not apply here.

Why? Because OC is mandatory — every registered vehicle must have it. The legislator treats it as a cost strictly connected with running a business and imposes no value limits.

Since the car serves the business (in whole or in part), the OC premium goes into the KPiR — down to the last złoty. The same applies to short-term additional coverage (e.g. short-term OC for transit), as long as it's connected to the business.

AC — the 150 000 zł vehicle value limit

This is where restrictions begin. AC (autocasco) is a deductible cost only in the portion corresponding to the 150 000 zł vehicle value limit (Art. 23 sec. 1 point 47 of the PIT Act).

The formula is simple:

deductible portion = 150 000 zł / vehicle value × 100%

If the car costs less than 150 000 zł, you deduct AC in full. If more — only proportionally.

Example

A company car valued at 200 000 zł:

• limit: 150 000 zł,
• deduction ratio: 150 000 / 200 000 × 100% = 75%,
• AC premium: 3000 zł,
• deduction: 3000 × 75% = 2250 zł.

The remaining 750 zł is your private cost — you don't book it in the KPiR.

The AC limit vs CO₂ emissions — don't confuse with depreciation

This is a common mistake. In 2026 a triple depreciation limit applies: 225 000 zł for cars with CO₂ emissions ≤ 50 g/km, 150 000 zł for 50–80 g/km, and 100 000 zł for > 80 g/km. Someone might think the AC limit also drops to 100 000 zł for a diesel.

It doesn't. The AC limit (150 000 zł) is independent of CO₂ emissions. The same amount applies to all vehicles, whether electric or diesel. This is a different legal construct — depreciation is one thing, AC is another.

The AC limit did not change in 2026 despite the new depreciation rules taking effect. That's why for cars valued at 150–225 thousand zł you can still deduct more on AC than on depreciation.

GAP — treated like AC

GAP (Guaranteed Asset Protection) is gap insurance — it covers the difference between the car's market value and the loan/lease balance in case of theft or total loss.

For accounting purposes, GAP is treated like AC: it's subject to the 150 000 zł vehicle value limit, since it depends on the vehicle's value (and it usually does). If GAP is linked to a car valued at e.g. 180 000 zł, you deduct 150 000/180 000 = 83.3% of the premium.

In practice, most GAP contracts are calculated based on vehicle value, so the 150 000 zł rule applies. You should check the nature of the policy in the contract.

NNW — 100% KUP, no limit

NNW (personal accident insurance) is deducted in full as a deductible cost (KUP). It is not subject to the 150 000 zł limit.

The reason: NNW protects the health of the driver and passengers, not the vehicle's assets. It's not tied to the vehicle's value, so the value limit doesn't apply.

You deduct the NNW premium in full — as long as the car serves the business.

VAT on insurance premiums

Car insurance follows standard VAT rules for company vehicles:

• 100% business use — you deduct 100% VAT from the premium.
• Mixed use (business + private) — you deduct 50% VAT (Art. 86 sec. 3 of the VAT Act).

Under the 50% method you don't deduct the other half of VAT, even if in a given month you used the car only for business. The 50% method is a one-time election per vehicle and applies for the entire year.

Insurance premiums are taxed at the VAT 23% rate, so the amount of deducted VAT is significant.

Full settlement example

Assume: a company car valued at 200 000 zł, used 100% in business (100% VAT method), annual premiums:

Annual premiums (net + VAT):

• OC — net 1200 zł, VAT 276 zł,
• AC — net 3000 zł, VAT 690 zł,
• GAP — net 500 zł, VAT 115 zł,
• NNW — net 200 zł, VAT 46 zł.

KPiR (PIT) — car 100% business:

• OC (net 1200) — 100% = 1200 zł,
• AC (net 3000) × 75% (limit 150 000/200 000) = 2250 zł,
• GAP (net 500) × 75% = 375 zł,
• NNW (net 200) — 100% = 200 zł,
• Total KPiR: 4025 zł.

VAT (100% business): you deduct all input VAT = 276 + 690 + 115 + 46 = 1127 zł.

Result: from total premiums of 6027 zł gross, you book 4025 zł in the KPiR and deduct 1127 zł VAT.

If the car were used in a mixed mode (50% private), Art. 23 sec. 1 point 46 PIT would additionally apply — the 75% limit for operating costs, including insurance. In that case the KPiR deduction would be lower.

What to watch out for in 2026

• AC limit = 150 000 zł, regardless of CO₂. Don't confuse with depreciation (225/150/100 thousand zł).
• NNW and OC have no limit — fully KUP, if the car serves the business.
• Treat GAP like AC — check the nature of the policy in the contract.
• 50% VAT for mixed-use cars — a year-long election, not per-month.
• Keep policies and invoices — in case of an audit, you must prove the nature and amounts of premiums.
• In leased cars the same rules apply — the AC limit applies regardless of whether the car is owned or leased.

When is it worth dropping AC?

For cars more expensive than 150 000 zł, it's worth calculating whether the AC premium is still worthwhile after the ratio. If the car is worth 300 000 zł, you deduct only 50% of AC — the rest is a private cost, but you pay the full premium. In that case it often makes more sense to:

• drop AC and take the risk yourself (especially for older cars),
• or buy cheaper AC with a higher deductible.

This is a purely business decision — not a tax one — but it's worth making it consciously, knowing the limits.

Sources

Based on Polish tax regulations.