2025 IRS Mileage Rate for Insurance Agents

The average insurance agent can leave up to $3,000+ in mileage deductions unclaimed each year. Let's make sure you're not one of them.

Every mile you drive matters. With the 2025 IRS mileage rate announcement approaching, here's what you need to know: missing deductions isn't just about lost money—it could trigger IRS scrutiny of your entire return.

The 2025 IRS Mileage Rate

Sixty seven cents. That's what the IRS allowed for each business mile in 2024. With the 2025 mileage rate announcement coming later this year, you need a plan to maximize every deductible mile.

Think about this: Most insurance agents drive 12,000-15,000 business miles annually. Missing even 20% of your deductible miles could cost you thousands in tax savings.

Tax Deductible Drives for Insurance Agents

Your business miles include more than most agents realize:

• Initial client consultations and policy renewal meetings
• Claims investigations and property inspections
• Risk assessments and site evaluations
• Training sessions and industry conferences
• Banking, post office runs, and marketing visits
• Networking events and professional meetings
• Even cancelled appointments (yes, really!)

The Mileage Tracking Advantage

The best mileage tracking app, Everlance, provides these essential features:

• Automatic trip detection and classification
• IRS-compliant reporting and documentation
• Digital receipt capture for tolls and parking
• Real-time mileage calculations and reporting
• Audit-ready record keeping and backup

Required Documentation Elements

Your mileage tracking software must capture these IRS requirements:

• Date and purpose of each business drive
• Starting and ending locations
• Total miles driven and vehicle information
• Business purpose classification
• Supporting documentation for related expenses

Best Practices for Mileage Tracking Software

Beyond these basics, smart documentation makes the difference between a smooth tax season and a stressful audit. Modern mileage tracking technology has transformed how insurance agents manage their vehicle expenses. Gone are the days of manual logbooks and missing deductions.

Consider this: An average insurance agent drives about 225 miles per week for business. At the current rate of 67 cents per mile, that's nearly $8,000 in potential annual deductions. Add parking and tolls, and you're looking at close to $9,000 in tax savings—but only if you track everything properly.

While we await the official 2025 mileage rate announcement, smart agents are already positioning themselves for maximum deductions. Setting up automated tracking now ensures you won't miss a single deductible mile when the new rate takes effect.

The Three Methods: Choose Wisely‍

Standard Mileage Rate

1. Multiply business miles by IRS rate
2. Simplest method
3. Best for newer vehicles

Actual Expenses

1. Track all vehicle costs
2. More complex
3. Sometimes better for luxury vehicles

Hybrid Approach

1. Track both and choose annually
2. Maximizes deductions
3. Requires detailed records

The IRS offers three methods for claiming vehicle expenses: the standard mileage rate, actual expenses, or a hybrid approach. Most agents find the standard rate simplest and most beneficial, especially when using reliable mileage tracking software to automate the process. If you use the actual expense method in the first year of owning the vehicle, you can't switch. But if you take the standard mileage rate the first year, you can switch back and forth between the two.

Strategic planning makes the difference. Schedule client meetings in clusters to maximize deductible miles. Keep digital copies of all records. Review weekly for missed trips. These habits transform good record-keeping into genuine tax savings.

Choosing the Best Mileage Tracking App for Insurance Agents

Remember: The IRS can audit business mileage up to three years later. Using professional mileage tracking software isn't just about maximizing deductions—it's about confidence in your records years down the road.

Maximize Your Deductions with Automated Mileage Tracking

Investing in proper mileage tracking today pays dividends throughout the year. Every drive to a client meeting, every property inspection, every networking event adds up. With the right tools and habits, you'll never leave money on the table again.

Ready to stop leaving money on the table? Download Everlance today and join thousands of insurance professionals who never miss a deductible mile.

Thanks for reading! If you want to automatically track mileage, keep in touch with Everlance to learn more about our mileage tracking software and to get notified when the 2025 IRS mileage rate is announced.