What's government employee car insurance?
Being a “government employee” can create a lot of confusion when it comes to a classical job description — do they work for the Department of Transportation or the CIA? Well, in terms of car insurance discounts and for the rest of this article, we’ll be referring to members of a local, state, and the federal government. Because of your occupation, you often appear as an ideal candidate for cheap auto insurance and are thus rewarded with a lowered premium. Let’s explore auto insurance as a government employee, including some other ways to save.
What’s a government employee?
While the position, responsibilities and even physical location of federal and state employees may vary greatly across this nation, there are some generalized takeaways we can use.
If you're looking for discounts on car insurance as a government employee, remember this general rule of thumb: if you’re a part of certain memberships or organizations through your job, you’ll fall into this career category and thus get the discount. Here are some examples of some of these memberships:
- Federal Managers Association
- National Federation of Federal Employees
- Federal Law Enforcement Officers Association
- Federal Physicians Association
While we haven’t included all the organizations available as a government employee, this should give you a general idea of what kind of associations car insurance companies look for when considering offering a discount. Check to see if your occupation fits into a labor union or organization in order to determine if you fall into this category.
Some other examples of these departments or occupations are members of the USPS, FBI, Department of Education, Federal Reserve, Department of Transportation, or Department of Interior.
Which companies offer it?
Even though these companies participate in discounts for government employees, you should double-check that your state participates as well.
- Liberty Mutual
- Farmers
- Geico*
- Travelers
- Nationwide
Fun fact! Geico was originally created to directly cater to government employees. Over time, they expanded their client base but still maintain this discount option.
Why do companies give discounts to government employees?
Overall, insurance companies do not see government employees as risky drivers. Using historical data that links occupation to driving habits, insurance companies can see that government employees tend to get into fewer accidents and thus file fewer claims than other occupations. Because of this, they are often rewarded with a discount.
Other ways to save
While the discount amount varies by company, you can still bet your premium for car insurance will be more than you’re willing to spend. So, to alleviate the pain in your pocket, we’ve come up with some other basic ideas for cost-cutting solutions. Let’s explore.
Telematics
If you’re a more cautious driver, telematics might be a great solution to your insurance woes. Telematics are plug-in devices that monitor the way you drive to better determine what kind of risk you will pose your insurance company. So, if you are a safe driver, but have other factors against you like age or marriage status, then this will be a great way to swing a discount on your premium. While it does depend on your state if you’ll be eligible to participate, here are some companies and potential discounts.
| Company | Estimated Savings |
|---|---|
| Progressive's SnapShot | Average of $130 |
| Allstate's Drivewise | Average of 10-25% |
| State Farm's Drive Safe & Save | Up to 15% |
| Esurance's DriveSense | Varies |
| Nationwide's SmartRide | Up to 40% |
| Liberty Mutual's RightTrack | Average of 5-30% |
Be smart with your coverage
The only coverage you’re legally required to have (unless you have a loan or lien on the vehicle), is your state’s liability limits. Other coverages, like your comprehensive or collision, are meant to protect your car from physical damages. However, depending on the value of your vehicle, you might not even need them. Consider these steps when thinking of downgrading your coverage to liability only:
- Determine the value of your vehicle by using Kelley Blue Book as well as the NADA guide.
- Analyze at the difference in price between having full coverage (comprehensive and collision) and having only liability. If the amount of money you save in premium from losing comprehensive or collision is not enough to cover or replace your vehicle (which you determined from step 1), keep full coverage.
- If by step 2 you determine that you need the additional coverage, consider raising your deductible. By raising your deductible, you will lower your premium. However, by raising your deductible, you take on more financial responsibility in the event you total your vehicle.
Bundle
If you rent or own a home, you should definitely consider grouping your policies together. This has to the potential to not only lower your auto insurance but can save you on your renters or homeowners policy as well!
Savings on Bundlings
| Savings with Renters | Savings with Home |
|---|---|
| $73 | $142 |
Pay Smart
Paying your premium up front (i.e., paid in full) or via your bank account (EFT) can save you from pesky transactional fees that can accumulate over time!
Savings Based on Method of Payment
| Savings with Paid in Full | Savings with EFT |
|---|---|
| $61 | $27 |
Shop Around
Sometimes, you can be doing everything in your power to save on auto insurance and still be paying too much. If that’s the case, you might just have the wrong company. Shopping with as many different companies as possible is the very best to see if you could be getting a better rate elsewhere. Do that here with us.
