Car Insurance for Government Employees

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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 premium. Let’s explore auto insurance as a government employee, including some other ways to save.

A guide to car insurance for civil servants — table of contents:
  1. Government employees defined
  2. Auto insurance rates for government employees
  3. Discounts for government employees
  4. How to save on car insurance

 


 

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 CompanyAverage 6-Month Premium
Allstate$1,011
Farmers$822
GEICO$602
Liberty Mutual$863
Nationwide$714
Progressive$809
State Farm$647
USAA$545

 

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.

Even though the following companies participate in discounts for government employees, you should double-check that your state participates as well:

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.

 

Telematics

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 agedriving 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.

 

CompanyEstimated Savings
Progressive's SnapShotAverage of $130
GEICO's DriveEasyVaries
Allstate's DrivewiseAverage of 10-25%
State Farm's Drive Safe & SaveUp to 15%
Esurance's DriveSenseVaries
Nationwide's SmartRideUp to 40%
Liberty Mutual's RightTrackAverage 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.

ANNUAL SAVINGS BASED ON BUNDLING
Savings with RentersSavings with Home
$79$149

 

Pay smart

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.

ANNUAL SAVINGS BASED ON METHOD OF PAYMENTS
Savings with Paid in FullSavings with EFT
$85$24

 

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 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.

 

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Ava Lynch LinkedIn

Based in Austin, TX, Ava has been in the insurance industry as a licensed agent for 4-plus years. Ava is currently one of The Zebra’s resident property insurance experts and has been featured in publications such as US News Report, GasBuddy, and Yahoo! Finance.