Auto Insurance: Government Work Coverage

Whether you work for the government or not, it's worth exploring your auto insurance options — especially since there may be additional discount opportunities for government employees. While the term government employee can be confusing, it generally refers to those working for local, state, or federal government, and includes a wide range of professionals.

Some insurance companies offer discounted policies to government employees, and it's worth comparing rates and knowing which companies offer these discounts. Government employees often pay lower rates for car insurance, and can sometimes save as much as 15% on their premium. This is because insurance companies view them as posing less of a driving risk and, therefore, less likely to get into accidents and file claims.

Some of the companies that offer discounts to government employees include:

- GEICO

- USAA

- State Farm

- Liberty Mutual

- Farmers Insurance

- Travelers

- Nationwide

Discounts for government employees

Government employees often pay lower rates for car insurance than other drivers because many insurance companies offer discounts to people who work in public service. This is because insurance companies do not see government employees as risky drivers. Using historical data, insurance companies have found that government employees tend to get into fewer accidents and thus file fewer claims than other occupations.

GEICO, USAA, and State Farm are considered the best auto insurance companies for federal employees due to their affordable rates and special discounts. Federal employee auto insurance discounts of up to 12% are available, and most companies offer additional discounts to keep prices low.

GEICO, which stands for Government Employee Insurance Company, offers a 12% discount to federal employees, referred to as an Eagle Discount. This discount is available to active and retired federal government employees, GS-7 and above. GEICO also offers a Membership discount for specific federal groups, though the Eagle and Membership discounts cannot be combined.

USAA typically offers the cheapest car insurance for members of the military, state department officials, and foreign service officers.

State Farm is a great alternative to GEICO and USAA, as it offers cheap rates and excellent coverage options.

Other companies that offer federal employee discounts include:

• Progressive
• Allstate
• Farmers Insurance
• Liberty Mutual
• Nationwide
• Travelers
• American Family
• AAA Insurance

When getting a quote from an insurer, ask if discounts are available for government employees. It's important to note that you might not qualify for a discount solely because of your employer—you may also have to belong to a certain professional association.

Best providers for government employee car insurance

If you are a government employee, you may be able to find cheap car insurance by comparing rates from multiple providers and knowing which ones offer discounts for government employees.

USAA

USAA offers the best rates, with an average six-month rate of $545. However, it is only available to active military members and their families.

GEICO

GEICO is the second-cheapest option, with an average six-month rate of $602. It was initially founded to provide insurance for federal government workers and military members, but now offers insurance to all consumers. GEICO is well-known for offering discounts to certain professionals, including government employees.

State Farm

State Farm offers an average six-month rate of $647.

Nationwide

Nationwide's average six-month rate is $714.

Progressive

Progressive has an average six-month rate of $809.

Farmers

Farmers Insurance has an average six-month rate of $822. It offers an affinity discount for military members and members of select businesses, occupational groups, and professional associations.

Liberty Mutual

Liberty Mutual has an average six-month rate of $863.

Allstate

Allstate has an average six-month rate of $1011.

How to get the best rates as a government employee

Government employees are often eligible for discounted auto insurance rates. This is because insurance companies do not view government employees as risky drivers. Historical data shows that government employees tend to get into fewer accidents and file fewer claims than other professionals.

• Sign up for safe driver programs: Some insurance companies offer safe driver programs, which may require you to install a telematics device in your vehicle to monitor your driving habits. If you are a cautious driver, this can be a great way to get a discount on your premium.
• Choose the right coverage: Evaluate your coverage needs to find an affordable rate. Policies with the minimum level of coverage are usually the cheapest, but you should also consider your potential out-of-pocket costs in the event of an accident or claim.
• Bundle your insurance policies: If you have other insurance policies, such as homeowners or renters insurance, consider bundling them with your auto insurance. This may qualify you for a multi-policy discount.
• Pay your policy in full: Paying your premium in full can save you money compared to paying in monthly instalments.
• Shop around and compare quotes: Compare rates from multiple providers and know which companies offer discounts to government employees. USAA, GEICO, State Farm, Nationwide, Progressive, Farmers, Liberty Mutual, and Allstate are some of the companies that offer discounts for government employees. However, note that discounts and availability may vary by state.
• Ask about additional discounts: Ask your current provider and any providers you are considering about other discounts you may be eligible for, such as loyalty, low-mileage, educational, or safe driving discounts.

Government assistance programs for low-income drivers

California

California's Low-Cost Auto (CLCA) program offers liability and underinsured motorist protection. To be eligible, applicants must:

• Be a California resident
• Own a car with a value of $25,000 or less
• Have maintained continuous liability coverage for the past six months
• Have a household income within 250% of the federal poverty limit
• Have a clean driving record
• Possess a valid California driver's license

New Jersey

New Jersey's Special Automobile Insurance Policy (SAIP) program offers medical coverage for accidents involving uninsured motorists. It costs $40 per month, and to be eligible, applicants must:

• Be a New Jersey resident
• Be enrolled in Medicaid with hospitalization coverage
• Have a valid New Jersey driver's license or permit

Hawaii

Hawaii's Aged, Blind, and Disabled (AABD) program offers government assistance car insurance. To be eligible, applicants must:

• Be a Hawaii resident
• Have a valid Hawaii driver's license
• Be enrolled in Medicaid
• Be 65 years of age or older, blind, or disabled
• Have an income below 34% of the federal poverty level

Other Ways to Save on Car Insurance

If you don't qualify for or have access to these programs, there are still ways to save on car insurance:

• Shop around for the best rates and maximize available discounts
• Consider pay-per-mile insurance if you are a safe driver who doesn't drive a lot
• Apply for common car insurance discounts, such as for safe driving, bundling policies, or vehicle safety features
• Choose a car that is inexpensive to insure, such as an older, smaller car with more safety features and a good safety record
• Reduce the number of cars you own
• Reduce your coverage, but carefully consider the risks and ensure you can afford any potential out-of-pocket costs
• Avoid letting your insurance lapse, as this will result in much higher rates when you reinstate your policy

Does my personal auto insurance cover business use?

If you're using a vehicle for your business, it's important to know whether your personal auto insurance covers it. The short answer is no—personal auto insurance policies do not usually provide coverage for business-related incidents and accidents. This means that if something goes wrong while you or your employee is driving for business reasons, you'll have to pay out of pocket for any legal, repair, and car rental costs.

However, there are some exceptions. While your personal auto insurance policy may appear to exclude all business use, certain types of vehicles, such as private passenger autos, pickups, motorhomes, and vans, are not excluded. Additionally, using your own vehicle in the course of your employment is generally not excluded, unless it falls under specific categories, such as vehicles used as public or livery conveyance, or vehicles used for the pickup or delivery of goods for compensation.

If you're a business owner, it's crucial to understand the difference between personal and commercial auto insurance. Commercial auto insurance covers business vehicles owned by the company or used for business purposes. It's typically required by state law and can protect your business from the costs of accidents in company-owned vehicles. On the other hand, personal auto insurance is meant for personal use and may not cover damages from accidents that occur while driving for work purposes.

To ensure you have the right coverage, it's important to review your policy carefully and consider purchasing commercial auto insurance or hired and non-owned auto insurance (HNOA) if you use your vehicle for business purposes. By doing so, you can avoid costly surprises in the event of an accident and protect your business finances.

Frequently asked questions