Car insurance 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.

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Rachael BrennanRachael BrennanSenior Editor & Licensed Auto Insurance ExpertRachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

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Anna SwartzAnna SwartzSenior Managing Editor & Auto Insurance ExpertAnna Swartz is a senior managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.

Published|2 min read

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Government jobs are known for having excellent benefits, but many people don’t know that working for the state or federal government may also get you lower rates on your car insurance

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Many insurance companies offer discounts for public servants, both at the local and federal level. In fact, both USAA and GEICO were created specifically to insure government employees, but GEICO has since expanded its market to include all drivers.

Key takeaways

  • Government employees often pay lower rates for car insurance, and can sometimes save as much as 15% on their premium.

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

  • GEICO offers a 12% discount to federal employees, referred to as an Eagle Discount.

  • Local government employees, like police officers, teachers, social workers, and public health workers, may find discounts or lower rates from some insurance companies.

How much is car insurance for government employees?

On average, government employees pay lower rates for car insurance, sometimes saving as much as 15% on their monthly premium. This is because many car insurance companies offer discounts for certain government employees, including active and retired military and law enforcement officers.

Additionally, many government agencies work with specific insurance companies to offer benefits to their employees, sometimes as part of a union benefit. For example, the National Air Traffic Controllers Association partners with GEICO to offer a special discounted rate to members.

Best car insurance companies for federal government employees

Federal government employees are often able to find lower car insurance rates thanks to their jobs, and some car insurance companies cater to their specific needs.

USAA

USAA typically offers the lowest rate for car insurance for federal government employees, including members of the military, state department officials, and foreign service officers. It also earns high marks for customer service and claims satisfaction, making it a top choice for families who can qualify for coverage.

→ Learn more about car insurance for drivers in the military 

GEICO

GEICO, which began as an insurance company specifically for federal employees,  offers a hefty discount for military members, as well as a slightly smaller discount for non-military federal employees. In addition to a loyalty discount, safe driving discount, and telematics discount, GEICO offers a 12% discount to non-military federal employees G-7 and above, referred to as the Eagle Discount.

→ Learn more about the cheapest car insurance companies

Car insurance for local government employees

Every car insurance company offers coverage to local government employees, but some companies offer lower rates based on profession. Some car insurance companies offer discounts for specific local government employees, like:

  • Police officers and other law enforcement

  • Teachers

  • Social workers

  • Public health workers

Each company has a different approach to discounts based on employment, so the best way to make sure you are getting all available discounts is to compare quotes from multiple companies.

How do I know if a carrier offers a government employee discount?

The best way to know if an insurance company offers a government employee discount is to get a quote or speak to an insurance expert. There are some car insurance companies, like GEICO, that offer company-wide discounts for government employees. 

However, because insurance is regulated at the state level, some companies offer discounts on a state-by-state basis, which means drivers in California and drivers in Texas may not get the same discount, even if they are insured by the same company.

Frequently asked questions

Is GEICO for government employees?

GEICO was founded with the intention of offering insurance coverage specifically to government employees, but its mission has changed over the years and it now offers coverage to everyone, regardless of their type of employment.

Does State Farm give discounts to federal employees?

State Farm discounts vary by state. This means that, even though there’s no government employee discount listed on the website, it is possible State Farm might offer one in certain locations. You’ll want to check with an insurance expert to find out if a specific discount is available in your area.

Is Government Employees Insurance Company the same as GEICO?

Yes, GEICO is an acronym for Government Employees Insurance Company.

Do federal employees qualify for USAA?

Some federal employees qualify for USAA car insurance, but not everyone. Active and retired members of the military, state department employees, and foreign service officers are the only people who qualify for coverage through USAA, which means other federal employees (employees for the department of agriculture, department of transportation, and more) do not qualify for coverage through USAA.

Author

Rachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

Editor

Anna Swartz is a senior managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.

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