Auto Insurance for Public Sector Workers (Top Companies + Discounts)

Car insurance for public sector workers can be cheaper thanks to discounts. Several of the top companies offer a public sector auto insurance discount, including AAA, Geico, Progressive, State Farm, Liberty Mutual, and Farmers.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Jun 15, 2020

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Things to remember...

  • Auto insurance for public sector workers can be cheaper thanks to discounts, such as the 8% discount offered by Geico
  • Public sector workers often use vehicles of one kind or another for personal transportation
  • Public sector workers who comparison shop for auto insurance can protect their vehicles without breaking the bank

Public sector employees fill many roles in the local, state, and federal governments. As these public sector workers go about their duties, they often need to use personal vehicles to get their jobs done. Public sector car insurance can oftentimes be more affordable because of auto insurance discounts and rebates.

As they drive to, from, and at work, public sector workers need auto insurance coverage that is both reliable and affordable.

While finding the right car insurance to suit your needs can be challenging, it’s definitely not impossible. This article will discuss how auto insurance comparison shopping sites can find affordable auto insurance for federal employees and other public sector workers, saving time and money as they search for coverage. We’ll also highlight some issues that many public sector workers have in common.

Enter your ZIP code in our free tool above to start comparing public sector car insurance right now.

What is a public sector worker?

The workforce is generally divided into two parts — public sector workers and private sector workers.

Private sector workers are people who work for private companies. The CEO of an insurance company is a private sector employee. Someone working the drive-thru window at a fast-food restaurant is also a private sector employee.

Alternatively, someone who works in the public sector is someone who works for the government in some capacity.

They may be a federal employee, such as an IRS agent, or they may work for a state or local government, like a firefighter. Some other examples include FBI agents, teachers, Federal Reserve employees, postal workers, and ambassadors with the State Department.

There is a wide variety of government jobs that need to be filled, from high-ranking positions that pay significant amounts to part-time, volunteer, and intern positions.

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Why are insurance discounts so important?

The chart below breaks down insurance costs as a percentage of income according to the National Association of Insurance Commissioners (NAIC). As you can see, auto insurance takes up between 1.5 and 3 percent of a person’s income, on average.

Average Annual Auto Insurance Rates as a Percentage of Income by State
StatesAverage Annual Rate
Insurance as %
of Income
Average Annual Rate
Insurance as %
of Income
Average Annual Rate
Insurance as %
of Income
South Dakota$744.28$41,825.001.78%$717.30$40,747.001.76%$690.95$41,402.001.67%
North Dakota$768.09$51,311.001.50%$743.27$49,309.001.51%$714.75$50,227.001.42%
North Carolina$768.28$35,099.002.19%$739.91$33,710.002.19%$720.47$34,814.002.07%
New Hampshire$795.50$48,280.001.65%$773.30$46,651.001.66%$755.76$47,346.001.60%
New Mexico$920.42$33,358.002.76%$888.83$31,573.002.82%$866.19$32,526.002.66%
South Carolina$936.69$33,295.002.81%$904.22$31,830.002.84%$880.82$32,117.002.74%
West Virginia$1,032.45$32,277.003.20%$1,021.37$31,312.003.26%$1,005.68$31,665.003.18%
Rhode Island$1,257.40$42,585.002.95%$1,210.55$41,139.002.94%$1,176.05$41,492.002.83%
District of Columbia$1,324.39$59,936.002.21%$1,316.48$56,573.002.33%$1,289.49$57,155.002.26%
New York$1,327.82$47,446.002.80%$1,301.49$45,710.002.85%$1,273.70$46,010.002.77%
New Jersey$1,379.20$49,983.002.76%$1,369.70$47,972.002.86%$1,334.59$48,569.002.75%
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Perhaps you’re wondering why people might be worried about a relatively small percentage like that. First, those numbers are just averages. When it comes to price, there will be people who pay much less and people who pay much more. People also have different levels of income.

In South Carolina, for example, the average person’s disposable income in 2014 was $33,295. This average includes everyone in the state, from those scraping by on a few thousand dollars a year to those earning six or seven figures annually.

The $939.69 average auto insurance premium for the state could be a month or more of someone’s income if they are a part-time substitute teacher or it could be as little as a single day’s wages for someone like the governor.

Many people need to keep their insurance costs as low as possible, so discounts can be incredibly valuable for people in public sector jobs, as they traditionally earn less than their counterparts in the private sector.

What insurance coverage do public sector workers need?

Public sector workers need the same basic coverages as everyone else, including:

  • Liability – Liability insurance protects you by paying for damages to the other driver’s vehicle if you are at fault in an accident. It also covers medical bills in the event of bodily injury someone else sustained in an accident where you were at fault.
  • Uninsured Motorist Coverage – Uninsured motorist coverage, often referred to as UM, is mandatory in some states and optional in others. It covers you at the same levels as your liability coverage if you are in an accident where an uninsured driver was at fault.
  • Collision – Collision insurance protects you by paying for damages to your vehicle if you are at fault in an accident. If you have a loan on your car you may be required by the lender to have active collision insurance on your policy.
  • Comprehensive – Comprehensive insurance covers damage to your car that isn’t caused by an accident. Some examples of what might be covered under a comprehensive policy are flood damage, theft, and vandalism.

These are not the only types of coverage you may need for your vehicle, but these are the basic options almost everyone is given when signing up for a policy with any insurance company.

A public sector worker may also have specific insurance needs based on their occupation.

Who has the cheapest auto insurance?

The cost of your insurance can vary widely from company to company, but there are some companies that generally come in at a lower price point than others.

USAA and Geico usually make the list of most affordable insurance companies, but that doesn’t mean they will necessarily be the most affordable option for you. Your age, driving record, ZIP code, and many other things can impact your premiums, as well as any discounts that may be available.

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Some Auto Insurance Considerations for Public Sector Workers

Public sector workers can be defined as people who work for a governmental body in some way. While all civil servants are public sector workers, not all public sector workers are necessarily civil servants.

Some common roles filled by public sector workers include the following:

  • Foreign Service civil servants
  • Firefighters
  • Emergency Medical Technicians
  • Police personnel
  • Teachers
  • Postal workers
  • Politicians and their staff members

Many of these jobs are low paying; some are even partly staffed by volunteers. Many towns have volunteer firefighters, for example.

Because these jobs are all essential to keeping society going, many companies offer perks to people who perform them. For instance, coffee shops often give discounts to teachers or firefighters for this reason. Insurance companies offer discounts to give back to people who are providing an essential service, but also because it is a smart financial choice.

Public sector employees have been shown to be very responsible drivers, filing fewer claims and saving insurance companies money in the long run.

Public sector employees perform their duties in many different environments and thus may have unique auto insurance coverage needs. For example, public sector employees who work abroad for governmental bodies such as the State Department may need to arrange for auto insurance coverage in the countries in which they work.

Public sector workers are also often members of unions or trade groups. An example of this could be police personnel who are also members of the police union, or teachers who are members of the largest union in the U.S., the National Education Association.

Many companies offer auto insurance discounts for union members and other similar groups.

Public sector workers who wish to take advantage of such money-saving opportunities should be sure to consult their union representatives and auto insurance agents for advice and guidance.

Another tried and true method for finding the most appropriate auto insurance coverage with the least effort involves using auto insurance comparison shopping websites. Auto insurance comparison shopping sites can save you many hours of online searching, identify the most beneficial policies, and save you a considerable amount of cash.

Are there any government employees who have special insurance needs?

Every public sector employee will have individual needs, but some groups may have needs that are specific to their work situation.

For example, public sector employees who are deployed overseas for years at a time may find that they need a policy to cover their vehicle while it’s in storage during their deployment.

Postal workers are another group who may have special insurance needs. Those who deliver mail in urban or suburban neighborhoods are typically given an official vehicle by their employer. That vehicle will have a postal service car insurance policy taken out by the government for its fleet.

Postal workers in rural areas who use their personal cars for work will need to arrange for special insurance coverage because personal policies don’t cover accidents that happen while you’re on the clock.

According to the CDC, shift work can have an impact on your sleep habits and that can, in turn, impact your safety behind the wheel. Government employees who perform shift work may find that these statistics could impact their insurance rates.

Auto Insurance Discounts for State Employees

If you’re driving a government-owned vehicle such as a postal delivery van or a garbage truck, those vehicles will be insured by a commercial policy held by the state.

Employees who don’t drive for the government won’t be covered under a commercial insurance plan, but they may be offered a discount through the state for their auto insurance.

Each state offers different benefits and discount programs to their employees, but one of the most common discounts provided is auto insurance for state employees.

For example, the state of New Jersey offers discounts on auto insurance with Liberty Mutual and NJM Insurance Group to their employees. Some states don’t have anything specific on their website, such as the state of Florida. Employee auto insurance discounts aren’t listed, but that doesn’t mean they don’t offer them.

If you work for a state government and want to know if discounted insurance is available to you, reach out to your human resources representative.

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Discounts By Company

Discounts offered by insurance companies vary widely. Each company has a specific set of discounts that they provide based on their own internal underwriting standards.

67 Auto Insurance Discounts by the Top 10 Companies
DiscountsAllstateAmerican FamilyFarmersGeicoLiberty MutualNationwideProgressiveState FarmTravelersUSAA
Discounts Provided #29273432383536202828
Adaptive Cruise Controlxxx
Adaptive Headlightsxxxx
Anti-lock Brakesxxxxxxxxxx
Claim Freexxxxxxxxxx
Continuous Coveragexxxxxx
Daytime Running Lightsxxxxxxxxx
Defensive Driverxxxxxxxxxx
Distant Studentxxxxxxxxx
Driver's Edxxxxxxxxx
Driving Device/Appxxxxxxxxx
Early Signingxxxxxxxx
Electronic Stability Controlxxxxxx
Emergency Deploymentx
Engaged Couple
Family Legacy xxxx
Family Planxxx
Farm Vehiclexxx
Fast 5
Federal Employeexxx
Forward Collision Warningxxx
Full Paymentxxxxxxx
Further Educationxxxx
Good Creditxxx
Good Studentxxxxxxxxxx
Green Vehiclexxxx
Lane Departure Warningxxx
Life Insurancexx
Low Mileagexxxxxxxxxx
Military Garagingx
Multiple Drivers
Multiple Policiesxxxxxxxxxx
Multiple Vehiclesxxxxxxxxx
New Addressx
New Customer/New Planx
New Graduatex
Newer Vehiclexxxxxxxx
Newly Licensedx
Occasional Operatorx
On Time Paymentsxx
Online Shopperx
Paperless Documentsxxxxx
Paperless/Auto Billingxxxxxxxxx
Passive Restraintxxxxxxxxxx
Recent Retireesx
Roadside Assistance
Safe Driverxxxxxxxxx
Seat Belt Usex
Senior Driverxxx
Stable Residencexx
Students & Alumnixxxx
Switching Providerxxxx
Utility Vehiclexxx
Vehicle Recoveryxxxxxxxxxx
VIN Etchingxxxxxx
Young Driverxxx
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If you believe you qualify for specific discounts such as a federal employee discount or a homeowner discount, it may be worth your time to seek out quotes from companies that offer those specific discounts to their customers.

Don’t limit the companies you get quotes from, though. Just because a company offers a discount you’re entitled to, that doesn’t necessarily mean they will have the lowest rates or the best coverage for you.

Below you’ll find information on some of the largest insurance companies and whether or not they offer a public employee discount.

It is important to remember, however, that companies can and do change their rules and procedures regularly. You’ll need to contact a company directly to verify you have the most up-to-date information.

AAA Auto Insurance Federal Employee Discount

AAA insurance does offer a federal employee discount, but it doesn’t offer the discount as part of its online quoting system.

To get a federal employee discount through AAA, call directly for a quote. Be aware, though, that some people have reported that you can only get the discount the first time you call, so be prepared to buy when you call or potentially lose the discount.

Geico Government Employee Discounts

What discounts does Geico provide? Is Geico cheaper for government employees? Geico does provide discounts to some federal employees, along with many other discounts.

According to the Geico website, the company offers discounts to the following federal groups:

  • American Society of Military Comptrollers
  • Armed Forces Benefit Association
  • Association of the U.S. Army
  • Fleet Reserve Association
  • Navy Federal Credit Union
  • Navy League of the United States
  • Blacks in Government
  • FAA Managers Association
  • Federal Asian Pacific American Council
  • Federal Law Enforcement Officers Association
  • Federal Managers Association
  • Federally Employed Women
  • National Air Traffic Controllers Association
  • National Association of Assistant United States Attorneys
  • National Association of Government Contractors
  • National Council of Social Security Management Associations
  • National Institutes of Health Recreation & Welfare Association
  • Organization of Professional Employees of the U.S. Dept. of Agriculture
  • Professional Managers Association
  • Young Government Leaders

As time passes Geico may add or change available discounts, so be sure to reach out to the company for the most current options. Currently, the Geico discount for government employees is listed on their website as eight percent. These discounts are not to be confused with the ones offered to Geico’s own employees, such as the Geico employee discount Enterprise offers on rental cars.

Progressive Federal Employee Discount

Progressive Direct auto insurance doesn’t offer a federal employee discount at this time.

It does, however, offer a number of other discounts according to its website, including:

  • Multi-policy
  • Multi-car
  • Continuous insurance
  • Teen driver
  • Good student
  • Distant student discount
  • Homeowner
  • Online quote
  • Sign online
  • Paperless
  • Pay in full
  • Automatic payment

Be sure to check with the company to make sure you are taking advantage of any discounts that may apply to you.

State Farm Federal Employee Discount

State Farm doesn’t offer a federal employee discount at this time. You can read our State Farm auto insurance review for more information.

According to the State Farm website, the company does offer a number of other discounts, including:

  • Anti-Lock Brakes
  • Anti-Theft
  • Claim Free
  • Defensive Driver
  • Distant Student
  • Driver’s Ed
  • Driving Device/App
  • Good Credit
  • Good Student
  • Homeowner
  • Low Mileage
  • Multiple Policies
  • Multiple Vehicles
  • Newer Vehicle
  • Paperless/Auto Billing
  • Passive Restraint
  • Safe Driver
  • Vehicle Recovery

The website makes it clear that the available discounts vary by state, so you will need to get a quote based on your address and ZIP code to find out exactly what discounts are available to you.

Liberty Mutual Federal Employee Discount

Liberty Mutual does offer a federal employee discount in addition to reducing your rates based on your driving history.

According to the company’s website, they also offer a number of other discounts, including:

  • Homeowner
  • Military (active, retired, or reserve personnel)
  • Early Shopper
  • Good Student
  • Student-Away-At-School

You may want to contact the company directly to find out if they have any additional discounts that might apply to you.

Farmers Federal Employee Discount

Farmers does offer a federal employee discount to its customers. What discounts does Farmers provide?

According to Farmers’ website, the company also offers several other discounts, including:

  • Defensive Driver
  • Distant Student
  • Driver’s Ed
  • Good Student
  • Federal Employee
  • Homeowner
  • Military
  • Occupation
  • Senior Driver
  • Safe Driver

Check the company website or contact them directly to make sure you are up-to-date on any and all available discounts.

Saving Money on Auto Insurance

Public sector workers come in all shapes and sizes. Many of these workers spend long hours driving for work and for personal reasons, which means they’re constantly exposed to the potential dangers of the open road.

In order to mitigate such dangers, public sector workers need the best auto insurance coverage they can find.

Luckily, public sector workers who take a few moments to peruse auto insurance comparison shopping websites can count on finding the best coverage options (with the least effort) for the best prices.

Average Annual Auto Insurance Rates by State
South Dakota$717.73$766.91$744.28$717.30$690.95$669.20
North Dakota$737.63$773.30$768.09$743.27$714.75$688.74
North Carolina$745.17$789.09$768.28$739.91$720.47$708.10
New Hampshire$777.98$818.75$795.50$773.30$755.76$746.57
New Mexico$896.58$937.59$920.42$888.83$866.19$869.85
South Carolina$910.51$973.10$936.69$904.22$880.82$857.70
West Virginia$1,015.57$1,025.78$1,032.45$1,021.37$1,005.68$992.57
Rhode Island$1,219.29$1,303.50$1,257.40$1,210.55$1,176.05$1,148.97
New York$1,300.09$1,360.66$1,327.82$1,301.49$1,273.70$1,236.77
District of Columbia$1,307.62$1,330.73$1,324.39$1,316.48$1,289.49$1,276.99
New Jersey$1,353.96$1,382.79$1,379.20$1,369.70$1,334.59$1,303.52
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In addition, many individuals can receive price reductions by asking companies about discounts related to their field of work.

There’s always a chance for you to save money while finding the coverage you need. Enter your ZIP code below to find the best rate for auto insurance for public sector workers.

Frequently Asked Questions: Auto Insurance for Public Sector Workers

Below are some of the most frequently asked questions about auto insurance for public sector employees:

#1 – What insurance company sells to federal employees?

When it comes to car insurance, U.S. government employees have a lot of choices. Essentially, every insurance company offers insurance to federal employees. Not every insurance company offers a discount for government employees, though.

The only time you might find a company that doesn’t sell to federal employees is if a company is specifically designed to cater to one demographic, but most companies that operate in this manner are specifically designed to provide coverage to a subset of government employees. For example, USAA only offers insurance to active and retired members of the U.S. military.

#2 – Is there a special government employee auto insurance?

Geico was originally created to offer insurance solely to federal employees, but it expanded its customer base long ago.

USAA offers significantly lower rates than most insurance companies because it caters to a very specific customer base — members of the military, both active and retired.

While military personnel are technically public sector employees, because USAA only offers coverage to a specific subset of government employees, we can’t offer a blanket recommendation for this company as an option for all public sector workers.

There is no longer a specific company that only offers government employee car insurance. There are, however, many companies detailed above that offer discounts to public sector employees.

#3 – Is there a FedEx auto insurance discount?

FedEx may offer an auto insurance discount to their employees, but as they are a private company and not a government organization the federal government employee discounts discussed in this article would not apply.

#4 – Is there an MTA auto insurance discount?

While we did not uncover any specific discounts for MTA employees, that doesn’t mean there are no discounts available.

Smaller insurance companies in your state might offer a discount for MTA employees, while larger companies may include MTA employees in their overall discounts for state and federal government employees.

#5 – Is there low-income car insurance?

In the U.S.A, car insurance companies are private and can set their own rates. This free-market competition helps to keep rates down, but insurance can still be expensive. There are some states that offer discounted insurance policies to low-income families, typically defined as people who are eligible for Medicaid, but not every state offers this option. Check with your state to find out if low-income auto insurance is available to you.

#6 – How does a government employee’s insurance company pay auto claims?

A government employee’s insurance claim is paid out the same way as any other policyholder’s.

The only real difference is that government employees using their cars for work purposes may need a special policy, like a business owners or other policy designed to cover them during work hours, similar to what Uber drivers and pizza delivery people might need.

#7 – What is the best auto insurance for postal workers?

When it comes to auto insurance for postal workers, those who are issued a vehicle are covered by their employer-provided auto insurance in the U.S. while driving that vehicle.

Postal workers who are using their own vehicles, which is more common in some rural areas, will need to have proper insurance for their vehicle.

They may need to look into purchasing a business owner’s policy or other policy designed to protect people using their personal vehicles for work purposes.

#8 – What other discounts are available to government employees?

In addition to government auto insurance discounts, there are other discounts out there for public sector workers. At the time of this writing, the following companies offer discounts for government employees. You will need to ask at the time of your purchase if the government employee discount is still available.

Technology and telecommunications companies offer discounts on their products to government employees:

  • Apple offers discounts for federal employees.
  • HP offers federal employees and military members up to 35 percent off products for home use.
  • Sprint offers discount programs to federal employees and military members.
  • Verizon offers discount programs to federal employees and military members.

Several car rental companies discount their daily rates for business and personal travel:

  • Alamo offers government employee and military discounts on rental cars for business and leisure travel.
  • Avis offers a government and military rate for business travel.
  • Budget offers government and military discounts for leisure travel.
  • Dollar offers government employee and military discounts on rental cars for business and personal travel.
  • Enterprise offers a government rate for business travel and military discounts for both business and leisure travel.
  • Hertz offers government employee and military discounts on rental cars for business and leisure travel.
  • National offers government employee and military discounts on rental cars for business and personal travel.

If you’re planning a trip and are a public-sector employee, you may be eligible for discounts on transportation and accommodation:

  • American Airlines offers some government and military discounts.
  • Amtrak offers government employees a discount on business travel.
  • Delta offers special government and military rates.
  • JetBlue offers discounted fares for federal employees.
  • Best Western offers discounts of 10 percent or more to federal employees.
  • La Quinta offers discounted rates for business and leisure travel to federal employees.
  • Red Roof Inn offers federal employees a 20 percent discount on leisure travel.
  • Wyndham Hotel Group offers government discounts at participating locations.

Finally, you don’t need a coupon to shop at some retailers. Gift Baskets Overseas offers a discount to military members and government employees. Under Armour offers a 10 percent discount to first responders and military members.

This list is far from exhaustive, so don’t hesitate to ask a business if they offer a government-employee discount.

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