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Government employees and auto 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 government workers of local, state, and the federal government. Because of your occupation, you often appear as an ideal candidate for cheap auto insurance by insurance providers, and are thus rewarded with a lowered insurance quote. Let’s explore auto insurance as a government employee, including some other ways to save.
What is 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 a 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 kinds 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.
How much is car insurance for government employees?
Civil servants paid exactly the national average for auto insurance in 2019 — $1,548 per year. While there may be discounts available for government employees, rates can vary substantially from insurer to insurer. Below is a snapshot of what civil servants can expect to pay, using the same driver profile across all insurance carriers in our methodology.
|Insurance Company||Average 6-Month Premium|
USAA offered the cheapest rate for civil servants, with an average monthly payment of about $90. GEICO was second-cheapest, charging just over $600 for a six-month policy.
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.
Fun fact: GEICO — which stands for Government Employees Insurance Company — was originally created to directly cater to government employees. Over time, they expanded their client base but still maintain this discount option.
Other ways to save
While discount amounts vary 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 tips for cost-cutting solutions. Let’s explore ways to save money on auto insurance.
If you’re a more cautious driver, telematics might be a great solution for your insurance woes. Telematics are plug-in devices that monitor the way you drive to better determine what kind of risk you will pose to your insurance company. So, if you are a safe driver, but have other factors against you like age, driving record, or bad credit, then this may 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.
|Progressive's SnapShot||Average of $130|
|Allstate's Drivewise||Average of 10-25%|
|State Farm's Drive Safe & Save||Up to 15%|
|Nationwide's SmartRide||Up to 40%|
|Liberty Mutual's RightTrack||Average of 5-30%|
Be smart with the right coverage
The only coverage you’re legally required to have (unless you have a loan or lease on the vehicle), is your state’s liability limits. Other coverages, like comprehensive or collision, are meant to protect your own 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 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 one — keep full coverage.
- If by step two, 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 multiple policies
If you rent or own a home, you should definitely consider grouping your policies together. This has the potential to not only lower your auto insurance rate, but save you money on your renters or homeowners policy as well. Policyholders who bundle their auto policy with renters insurance save an average of $79 annually, while homeowners bundles save approximately $149 annually.
Paying your premium upfront (i.e., paid in full) or via your bank account (EFT) can save you from pesky transactional fees that can accumulate over time. Policyholders who pay in full save about $85 per year, while EFT payments will save you approximately $24 annually.
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 way to see if you could be getting a better rate elsewhere. Do that here with us — enter your ZIP code below to get started comparing car insurance quotes.
Make an informed decision: compare insurance rates today.
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.