5 Things to Know About Car Insurance For Federal Employees Right Now

When you’re a federal employee when you get hired, you typically go through a stringent background check and vetting process. That means you may be able to get discounts on things like car insurance because you’re viewed as a qualified driver since you have gone through that background check process.

As an example, if you are a postal worker, you may be considered low-risk by your insurance company, so auto insurance for postal workers may be cheaper or may come with discount options.

Other federal employees may enjoy similar benefits from insurance companies.

Federal employees may see not only generous insurance discounts but also discounts from different private companies.

With that being said, if you’re a federal employee, the following are five things to know about car insurance right now.

You May Be Considered a Low-Risk Driver

Insurance companies make their money by crunching the numbers and understanding who represents the greatest risk to them versus the lowest risk. The lowest-risk populations tend to get the best prices, which only makes sense. They’re less likely to get in an accident the insurance company will have to pay for.

All insurance companies do the calculations, and they find federal employees, including postal workers, are statistically less likely to get in an accident.

Who’s A Government Employee?

There are differences in who might be considered a federal or a state employee depending on where you live in the country.

If you’re part of certain organizations, it can give you a better idea of whether an insurance company might classify you as a federal or government employee.

Membership organizations include the National Federation of Federal Employees, the Federal Managers Association and the Federal Law Enforcement Officers Association, to name a few.

Other organizations you can go through to find generous insurance discounts include The USPS Federal Credit Union, the National Active and Retired Federal Employees Association, and The American Postal Workers Union.

Again, if you work for the United States Postal Service, you are considered a government employee, as is the case if you work for the Department of Transportation, the FBI, or the Department of Education.

Local government officials, teachers, or health care workers may also qualify for discounts.

What Companies Offer Discounts?

Two of the biggest companies that offer discounts to federal and government employees are AAA and Geico. In fact, Geico stands for the Government Employees Insurance Company.

The entire purpose of the founding of the company in 1936 was to insure government employees.

Geico specifically has something called the Federal Program. They offer discounts on car insurance for both active and retired federal government employees who are GS-7 and above. If you aren’t on the GS pay system, but you have a position that’s the equivalent of GS-11, you can also qualify for Geico discounts.

How Can Government Workers Find the Best Deals?

If you are a government worker and you are in the market to save on insurance, there are certain things you can do to find the best options.

One thing to do is ask people you work with who they get their insurance through. You may find that they can highlight potential deals you wouldn’t find on your own.

You can also talk to an independent insurance agent and tell them more about your job, and they may be able to connect you with companies offering discounts.

If you work for the government, but you’re also a veteran, you may be able to access even more insurance discounts. If you go through a company like USAA, that’s especially true. They offer a variety of insurance plans offered only to veterans and certain family members who qualify.

What If You Don’t Qualify?

If somehow you don’t qualify for federal worker discounts, that doesn’t mean there aren’t valuable ways to save on the cost of auto insurance. You can, for example, use a telematics system.

A telematics system monitors your driving habits and then reports them to your insurance company.

When they have a picture of how you drive, they might give you discounts to keep up your safe driving.

Many of the major insurance providers in the country offer this kind of discount.

Bundling multiple policies with one insurance company is also a good way to save money.

Car insurance isn’t something to overpay for because there are so many flexible ways to save, so make sure you find the options that work best for you.