Pretty much like that, it gets deduced from salary and not only insurance and maintenance but also fuel expenses often (sometimes? always?) go through that black box that shields the user from full awareness of car ownership cost. The taxation aspect is complicated enough that everybody has an opinion wether it makes a difference or not, but nobody is entirely sure. Many users will claim that there is no benefit, but secretly hope there is. It might have a bigger impact on the employer side where I suspect that these costs are something entirely different than salaries in terms of bookkeeping, to the point where in some companies you might be able to negotiate a bigger total if you take a party of it as a car (big maybes, this is me trying to get a consistent mental model of why these arrangements are so crazy popular, if you ask me this is either a shameful subsidy for those who need it least our an entirely pointless overcompication of something that could be so simple).

Oh, and a fun anecdote further illustrating the craziness of it all: there's an organization now that sued for eligibility of all kinds of vehicles, so if my employer had such a programme I could get my next fancy bicycle through them! (But as an inner city renter, my bike ownership is limited by storage anyways, and pretty much maxed out already)