Whether you are employed at a local, regional, state or federal level, car insurance for government employees is worth exploring, especially since there may be additional discounts when the government is your employer. Many insurance companies recognize that there is a large portion of the U.S. workforce in the government and have created discounts specifically tailored for these public servants. It may be worth your time to explore if there are discounts designated for federal or other government agency employees, but there are other ways to potentially save on premiums too.
What is a government employee?
The term “government employee” encompasses a wide range of professionals. While you may see educators and members of the military included in this category of employment, generally speaking, a government employee is someone who works for the local, state or federal government. There are numerous government agencies, like the Department of Defense or Department of Transportation. However, there are an array of service agencies, such as working with utilities or transit, that work on a local or regional level as well.
Some positions that would be considered a government employee include:
- Civil service employees who are part of governmental agencies
- Social workers
- Federal law enforcement officers
- Air traffic controllers
What is the cost of car insurance for government employees?
While there is not a specific rate or less expensive government employee car insurance policy, it is important to note that rates are based on a number of personal factors. Occupation is not a significant factor in car insurance rates, though some providers may provide special coverage options or discounts. However, your employer, such as the government, may entitle you to additional discounts.
The national average cost of full coverage car insurance is $1,674 per year, according to Bankrate’s 2021 study of quoted annual premiums. Your rate will likely differ and could be higher or lower based on your vehicle, driving history and other personal factors like your ZIP code, age or credit score, depending on the state you live in. No matter who you are employed by, you should check with several carriers for quotes, since rates can vary greatly from one carrier to another.
Car insurance companies for government employees
When looking for a car insurance company, government employees should consider their needs and lifestyle. Mileage plays an important role in determining car insurance rates, and if you are commuting daily to an office or job site, it can help to estimate your annual mileage as accurately as possible to ensure you’re getting the best rate. The number of vehicles you insure and other drivers in your household all also play a factor in your car insurance premium. Below are some companies that government employees can consider:
Geico’s auto insurance is some of the cheapest in the nation at an average of $1,405 per year for full coverage. For eligible federal employees, two more discounts could be an option: the Eagle discount for federal employees above a certain level and the membership discount for specific federal groups. These two discounts cannot be combined as Geico will only allow one federal employee discount to be used on the car insurance policy at a time.
Learn more: Geico insurance review
Travelers’ Affinity Car & Home Program offers discounts to employees and members of participating groups to receive additional savings on their car insurance. The average cost of car insurance with Travelers is $1,325 per year for full coverage. However, one disadvantage is that Travelers does not widely advertise what professional organizations partner with them, so interested drivers should contact a Travelers agent directly to see if they qualify.
Learn more: Travelers insurance review
Farmers insurance has an affinity discount available for its auto insurance policies that applies specifically to military members as well as members of select businesses, occupational groups or professional associations. Similarly to Travelers, drivers will need to speak to a Farmers agent to see if they can qualify for this discount. The average cost of car insurance with Farmers is slightly higher than the others on this list at an average of $2,000 per year for full coverage.
Learn more: Farmers insurance review
USAA offers auto and home insurance specifically for members of the military and eligible family members, like spouses and children. The average annual cost of car insurance through USAA is $1,225 per year for full coverage. Although there is an eligibility requirement for USAA insurance members to have a military background or be a family member of service member, military members who have transitioned into a government job could still qualify.
Learn more: USAA insurance review
Although Erie does not advertise any specific professional discount, it does offer some of the cheapest car insurance rates on average. Its Rate Lock program, for example, keeps premiums the same from year to year where applicable by state and individual qualifications. Erie’s affordable insurance options may make it appealing to government employees. On average, its policies cost $1,233 per year for full coverage. However, Erie’s state availability is also more limited than some of the other companies on this list.
Learn more: Erie insurance review
Discounts for government employees
Many companies offer discounts to government employees, but you may need to ask about their availability when quoting to see if you qualify. Another point to keep in mind when considering discounts is you may not necessarily receive one for the type of employment you have, but rather if you belong to a certain professional association. For instance, you may qualify for a car insurance discount if you belong to a group such as the Federal Managers Association or Federal Law Enforcement Officers Association.
There are likely a few reasons why government employees may be eligible for additional savings. One reason is that carriers may view them as posing less driving risk. Another is that government employees typically have access to multiple benefits and steady salaries, which could make them an ideal applicant for auto insurance.
Frequently asked questions
What is the best way to save on my car insurance premiums?
Discounts are a great way to save, but there are other ways to achieve lower premiums. First, compare multiple carriers for the best rates. Each carrier considers your personal information and uses it to determine your premium, but your rates can be different with each one depending on how the carrier weighs each factor. Secondly, consider raising your deductible if you add comprehensive coverage and collision coverage to your policy. The higher your deductible, the lower your premiums. You’ll want to keep in mind that your deductible is the amount you’re responsible for out of pocket in the event of a claim, so it should be an amount you are comfortable paying.
How much car insurance do I need?
You need to purchase at least enough auto insurance coverage to meet your state minimum requirements. While you need auto insurance to legally drive in most places, the bare minimum is typically not enough coverage to offer significant financial protection. Most insurance experts recommend that drivers carry higher liability limits if their budget allows, which offers greater financial protection if you are in an at-fault accident.
How do I know if a carrier offers a government employee discount?
To find out if a provider offers discounts applicable to government employees, be sure to review your options with a licensed insurance agent. They should be able to tell you right away if you qualify based on your employment. Another method is to compare multiple carriers and specifically look for their available discounts, either online or through their customer service hotline.