Federal Employee Auto Insurance Discount: How Much You Can Save in 2023

There are a lot of perks to being a government employee, and discounts on auto insurance are among them. You don’t have time to research every company and federal employee discount, so we have done it for you.

A federal employee car insurance discount can earn you a 10% discount below the average full coverage auto insurance rates. We’ll tell you how to get that discount and which auto insurance companies do the most for government employees just like you.

If you want to see how a federal employee discount can lower auto insurance right now, enter your ZIP code in our FREE comparison tool above.

How can your job change your rates?

Government employees are individuals who work for the United States government. Federal government employees work in various fields, such as education, human resources, and even science. Your specific role as a federal employee can determine how much you’ll pay for auto insurance.

Federal employees may qualify for a 10 percent discount. Some auto insurance companies don’t carry discounts for government employees, so you’ll have to shop around to find a company that does.

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What are auto insurance rates for federal employees?

According to the Congressional Research Service’s Federal Workforce Statistics report, there are about 2.1 million federal employees. There are about 1.8 million civilians employed with the federal government. According to the Office of Personnel Management, there are government employees that span different fields, so auto insurance rates for each federal employee could be different.

Let’s look at auto insurance rates for government employees.

Geico auto insurance is one company that offers federal employee discounts. Your Geico federal employee discount may not be the same as someone else’s however, so it’s best to check before you assume what you’ll save. These are average rates that could change based on your vehicle, credit history, driving record, and age.

Does your annual mileage affect your rates as a federal employee?

The number of miles you travel is a factor that determines a federal employee’s auto insurance rates. If an auto insurance company doesn’t carry any benefits or special offers for government employees, you may still be able to save money on commute mileage.

Commute mileage is the estimate of the miles you may drive during the auto insurance policy.

Let’s compare commute mileage rates based on the top auto insurance companies in the United States.

The lowest commute mileage estimates produce cheaper auto insurance rates, while more commute mileage had more expensive rates. USAA and Geico are the cheapest auto insurance companies on the list, and each of these carriers has other excellent discounts available.

If the average cost of auto insurance is $1,029 per year, why are the rates so expensive from the top auto insurance companies? These rates show average auto insurance rates from different companies after all factors that determine auto insurance have been considered.

The full coverage average is based on a national average, which is the combined national average of liability, collision, and comprehensive coverage.

Which companies offer federal employee discounts?

Some companies don’t offer government employee auto insurance discounts. Let’s examine which auto insurance companies do offer federal government employee discounts.

Four auto insurance companies are known to give federal government employee discounts, but Geico and Liberty Mutual are the only two companies that report the discount percentage. Of course, you may still be subject to other eligibility requirements; you may need to prove that you have a government email address, or some form of valid government employee identification in order to get the deal.

Special military rates and monthly discounts are also going to be subject to eligibility verification. You will likely have to show your military ID in order to qualify for the military discount.

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What should you know about education and government employees?

According to some reports, 60 percent of government employees don’t have a college degree.

Three years of general work experience is equivalent to a four-year course of study, according to Federal Government jobs.

However, a college degree will increase your chances of getting a better salary as a federal employee. Let’s continue through the following subsections to learn how education level can affect auto insurance.

How College Education Can Affect Rates

The Consumer Federation of America reported that there’s a correlation between less risk for auto insurance and a driver with a college degree. Some auto insurance companies even offer alumni discounts to their customers. As you shop, ask an auto insurance agent about alumni discounts.

Why do auto insurance companies ask about your occupation?

Auto insurance companies estimate the risk of the driver for each auto insurance policy. Your job may be risky for an auto insurance provider to insure. Therefore, an agent will estimate your auto insurance rates based on the research their company has gathered about your occupation and other factors; the risk for government employees is generally higher.

Each insurance company determines rates differently, so shop around and compare to get the best deal. Your rate may wind up being lower even without a specific discount for being a federal employee.

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Should you tell your insurance company when you change jobs?

Changing your job could mean lower auto insurance rates. Some federal employees have expensive auto insurance rates despite the federal employee discount. However, if your government job has changed to a less risky profession, you could be eligible for lower auto insurance rates.

Alert your auto insurance company when your job changes to see if you can lower your auto insurance policy.

References:

1. https://crsreports.congress.gov/product/details?prodcode=R43590
2. https://www.opm.gov/policy-data-oversight/data-analysis-documentation/federal-employment-reports/reports-publications/federal-civilian-employment/
3. https://consumerfed.org/cfa-studies-on-the-plight-of-low-and-moderate-income-good-drivers-in-affording-state-required-auto-insurance/

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