There are different costs to insure a vehicle based on whether it is "personal" use or "business" use. The IRS rate does not distinguish these. Is there any documentation on which scenario IRS is assuming this applies to?
- insurance cost of second car (liability only) - depreciation - gas - maintenance and estimated repairs
This was for my car, which was ~5 years old when I got it and is very fuel efficient. I found that depreciation makes up more than half of the total cost, so a newer car would likely have more depreciation than an older car. I got mine for $10k, and in 5 years, it's worth $5k. I think that's pretty common, regardless of the age of the car, so a ~$20k car would depreciate to ~$10k in 5 years. Also, newer cars are more expensive to insure, and taking a car to a shop is more expensive than doing it yourself.
So $0.50/mile sounds reasonable for the average, relatively new car that is taken to the shop for maintenance and repairs. Insurance was a pretty small item in my calculations, so I doubt the difference between corporate and personal insurance would change the figure that much.
- insurance cost of second car (liability only) - depreciation - gas - maintenance and estimated repairs
This was for my car, which was ~5 years old when I got it and is very fuel efficient. I found that depreciation makes up more than half of the total cost, so a newer car would likely have more depreciation than an older car. I got mine for $10k, and in 5 years, it's worth $5k. I think that's pretty common, regardless of the age of the car, so a ~$20k car would depreciate to ~$10k in 5 years. Also, newer cars are more expensive to insure, and taking a car to a shop is more expensive than doing it yourself.
So $0.50 sounds reasonable for the average, relatively new car that is taken to the shop for maintenance and repairs.