What is the best way to save on car insurance?

Shopping around for new rates and researching discounts are two of the most efficient ways to save on car insurance. Depending on your situation, you might also be able to lower your costs by improving your credit score, taking a defensive driving course or reducing your annual mileage.

How much car insurance do I need?

You need to purchase at least enough auto insurance coverage to meet your state’s minimum requirements. However, note that the minimum coverage required by law is typically not enough to offer significant financial protection. Insurance experts recommend consulting with a licensed insurance professional if you need help figuring out what types of insurance and policy limits best fit your situation.

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

A number of insurance carriers offer specific discounts to government employees, but those discounts often aren’t advertised clearly online. The most direct way to confirm whether or not an insurance company offers a government employee discount is to call the carrier’s customer service line. You can also work with an independent insurance agent or broker to identify a range of companies that offer these discounts.

Does GEICO stand for Government Employee Insurance Company?

Yes, GEICO stands for Government Employee Insurance Company. It was initially founded to provide insurance for federal government workers and military members. But now the company offers insurance to consumers regardless of whether they’re a government or private employee.

Car Insurance for Government Employees

Do government employees get car insurance discounts?

Car insurance discounts for government employees are dependent on what government body you work for as well as the carriers you shop with. While there’s no single standardized insurance discount for all government employees, some insurance providers offer specific savings opportunities for government workers — so comparison shopping may be the key to unlocking your discount.

What is a government employee?

The term “government employee” encompasses a wide range of professionals. While you may see educators and members of the military included in this category of employment, generally speaking, a government employee is someone who works for the local, state or federal government. There are numerous government agencies, like the Department of Defense or Department of Transportation. However, there are an array of service agencies, such as those centered around utilities or transit, that work on a local or regional level, as well.

Some positions that might fall under the definition of “government employee” for the purposes of insurance include:

Air traffic controllers
Civil service employees who are part of governmental agencies
Federal law enforcement officers
Military members
Police officers
Social workers

What is the cost of auto insurance for government employees?

Because car insurance pricing depends on so many highly variable factors — of which employment is one of the least significant — it’s difficult to give a single estimate of the cost of auto insurance for government employees.

The national average cost of car insurance is $2,458 per year for full coverage and $678 for minimum coverage, according to Bankrate’s 2024 study of quoted annual premiums. However, that average rate is based on a single driver with good credit, no history of accidents or violations and a 2022 Toyota Camry. Your own rates could be higher or lower based on variations in those factors, along with things like your location, insurance history or, in most states, age and gender.

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Advertising disclosure

This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Insurance disclosure

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Car insurance companies for government employees

When looking for a car insurance company, government employees should consider their needs and lifestyle. Mileage plays an important role in determining car insurance rates, and if you are commuting daily to an office or job site, it can help to estimate your annual mileage as accurately as possible to ensure you’re getting the best rate. The number of vehicles you insure and other drivers in your household also play a factor in your car insurance premium. Below are some companies that government employees may want to consider:

Geico’s auto insurance is some of the cheapest in the nation at an average of $2,107 per year for full coverage. Eligible federal employees may be able to take advantage of two discount programs: the Eagle discount for federal employees above a certain level and the membership discount for specific federal groups. These two discounts cannot be combined, as Geico will only allow one federal employee discount to be used on the car insurance policy at a time.

Travelers’ Affinity Car & Home Program offers discounts to employees and members of participating groups to receive additional savings on their car insurance. The average cost of car insurance with Travelers is $1,996 per year for full coverage. However, one disadvantage is that Travelers does not widely advertise what professional organizations partner with them, so interested drivers should contact a Travelers agent directly to see if they qualify.

Farmers Insurance has an affinity discount available for its auto insurance policies that applies specifically to military members, as well as members of select businesses, occupational groups and professional associations. Similarly to Travelers, drivers will need to speak to a Farmers agent to see if they can qualify for this discount. The average cost of car insurance with Farmers is $3,403 per year for full coverage.

USAA offers auto and home insurance specifically for members of the military and eligible family members, like spouses and children. The average annual cost of car insurance through USAA is $1,992 per year for full coverage. Although there is an eligibility requirement for USAA insurance members to have a military background or be a family member of a service member, military members who have transitioned into a government job could still qualify.

Although Erie does not advertise any specific professional discount, it does offer some of the cheapest car insurance rates on average. Its Rate Lock program, for example, keeps premiums the same from year to year where applicable by state and individual qualifications. Erie’s affordable insurance options may make it appealing to government employees. On average, its policies cost $2,127 per year for full coverage. However, Erie only offers auto insurance in 12 states and Washington, D.C. — fewer than some of the other companies on this list.

How to get discounts for government employees

When shopping for auto insurance, be ready to ask your agent or broker if a given company offers discounts for government employees. Keep in mind that simply working for the government might not qualify you for all discounts. In some cases, you’ll need to belong to a specific professional group such as the Federal Law Enforcement Officers Association or the Federal Managers Association.

Why do federal employees get insurance discounts?

Working for the government may not impact your driving risk directly, but it communicates a few things to potential insurers that could lower the cost of your coverage. First, government employees may be seen as more responsible and thus less of a driving risk compared to individuals who work in fields without strict codes of conduct. On the other hand, insurance companies may also view government workers as carrying a lower financial risk, since government salaries can be more stable than in other industries.

Frequently asked questions

Shopping around for new rates and researching discounts are two of the most efficient ways to save on car insurance. Depending on your situation, you might also be able to lower your costs by improving your credit score, taking a defensive driving course or reducing your annual mileage.
You need to purchase at least enough auto insurance coverage to meet your state’s minimum requirements. However, note that the minimum coverage required by law is typically not enough to offer significant financial protection. Insurance experts recommend consulting with a licensed insurance professional if you need help figuring out what types of insurance and policy limits best fit your situation.
A number of insurance carriers offer specific discounts to government employees, but those discounts often aren’t advertised clearly online. The most direct way to confirm whether or not an insurance company offers a government employee discount is to call the carrier’s customer service line. You can also work with an independent insurance agent or broker to identify a range of companies that offer these discounts.
Yes, GEICO stands for Government Employee Insurance Company. It was initially founded to provide insurance for federal government workers and military members. But now the company offers insurance to consumers regardless of whether they’re a government or private employee.

Methodology

Bankrate utilizes Quadrant Information Services to analyze November 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Car insurance for government employees