Are there Car Insurance Discounts for Federal Employees?

Last Updated on December 11, 2019

Federal jobs are not just for those enlisted in the military or elected into federal office positions. Instead, the United States employs civilians for jobs throughout the United States (and even posts overseas). The federal civil service is considered the U.S. civilian workforce, and they fill positions in government agencies and departments, including those in the White House.

According to the Office of Personnel Management, civilian workers totaled 2.79 million by December 2011 (not including those working for the U.S. Postal Service). That is a considerable number of employees under government payroll.

As a federal employee, you get plenty of on-the-job perks. Most federal jobs pay more than state or private companies, which is why they are highly sought after and competitive to get into. Furthermore, most companies offer discounts to federal workers, including civilians. You might get a discount on your cell phone bill, certain utilities, and even a gym membership.

One discount you might have overlooked is your car insurance.

Car insurance rates, depending on where you live, can take their toll on your monthly budget. Therefore, squeezing even a few dollars in savings out could be monumental in the long run.

Is there a Discount for Government Employees?

Yes, and no.

It comes down to the company, and not all companies offer these discounts.

If you work for the local state, municipality, or federal government, your occupation makes you a candidate for cheaper insurance rates – but finding them may prove difficult.

Are You Officially a Government Employee?

The first question to ask is your status. Your position, responsibilities, and the location of your job vary, and if you want discounts on your car insurance, you must work for an organization that falls into the category of “government” work.

Some associations and organizations that might qualify include:

• Federal Law Enforcement Officers Association
• Federal Physician Association
• National Federation of Federal Employees
• Federal Managers Association
• Department of Education
• Federal Reserve
• Department of Interior
• United States Postal Service
• Federally Employed Fire Service Professionals
• Department of Agriculture
• National Security Council
• Federal Communication Commission
• Department of Health and Human Services
• Justice System
• Internal Revenue Service

Typically, if you have a federal job, you would fall into one of these organizations or unions. Usually, when you are hired and meet with your human resources representative, they should tell you your status and possibly present you with some insurance savings options.

If they do not, you still have ways to unlock your savings.

Tips for Finding and Securing Federal Government Insurance Premium Discounts

You do not get a policy through the government. Instead, you still work with a private automobile insurance company who, in return, provides you with a discount for your federal service.

Some ways to unlock your savings include:

• Asking Your Coworkers Where They Received Insurance: One of the best ways is to ask your HR representative or coworkers if they have already received discounts and which insurance companies they go through. Some jobs offer direct contacts to those insurance programs.
• Speak with an Insurance Agent or Broker: If you are still unsure who might offer a discount, meet with an insurance broker that deals with multiple insurance agencies. They can find those who provide the federal discount, compare discounts along with other premium breaks you qualify for, then help you find a policy that works.
• Consider Former Veteran Status Too: You might work for the federal government now, but are you also a veteran? If so, this unlocks other insurance discounts, such as getting your insurance through USAA – a company that offers exclusive insurance plans to veterans and their qualified family members.

Why Do Companies Offer Federal Workers Discounts on their Insurance Premiums?

Insurance companies often see federal employees as low risk. After all, you have gone through the extensive background checks to receive your security clearance, including heavy scrutiny of your driving record. Government employees tend to get into fewer accidents, simply because accidents risk their ability to keep their job.

Therefore, if you work for the federal government, an insurance company is more than willing to give you a premium discount because they know you are a low risk to insure.

Still Don’t Qualify? You Have Other Options

Major insurance companies do offer discounts to federal workers, including Liberty Mutual, Farmers Insurance, Nationwide, Travelers, and GEICO.

However, if you do not qualify as a “federal” employee under their plans, you have other ways to save. You could even consider a telematic system, which monitors your driving habits and permits the insurance company to assess your day-to-day driving skills. Once they have a full idea of how you drive, you can receive discounts for continuing to drive safely.

Some companies offering these discounts include Progressive, Esurance, Nationwide, Liberty Mutual, and Allstate.

Regardless, if you qualify for a discount, or think you might, always investigate it further. The more deductions you can unlock, the cheaper your monthly premiums can be, and the easier it becomes to insure your vehicle.