Jessica Sautter is a Content Writer for with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Content Writer & Educator Jessica Sautter

Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager Chris Harrigan

UPDATED: Jun 7, 2022

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Key Takeaways...

  • The average cost of postal employee car insurance is $125 per month
  • There are auto insurance discounts for federal employees at multiple companies
  • Rural postal employees need commercial auto insurance added to their standard auto insurance policy
  • There are several programs postal employees can use to lower car insurance rates

Postal employee car insurance is in the same category as government employees. The majority of current employees of the postal service in the United States work for USPS a government-regulated postal service tasked to deliver mail to residents in the United States.

How much does USPS insurance cost? Auto insurance for USPS employees is usually cheaper than average. But how come? Our postal worker car insurance guide will take you through the cost of postal employee car insurance quotes and how postal employees can save money through federal employee discounts.

Start comparing affordable postal employee car insurance quotes in your area by entering your ZIP code in our free comparison tool.

How much is postal employee car insurance?

Postal employee auto insurance is about $125 per month on average. We calculated the average by comparing the top car insurance companies that provide specialized government employee insurance. Here are the companies we compared and their average monthly rates for postal worker auto insurance.

Average Monthly Postal Employee Car Insurance Rates by Company
Car Insurance CompaniesAverage Monthly Car Insurance Rates
State Farm$108
Liberty Mutual$144
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The cheapest postal employee car insurance company is USAA. However, USAA is only available to military members and their immediate families. If you’re not in the military, your next best options for cheap postal employee auto insurance are GEICO, State Farm, and Nationwide.

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How can postal employee car insurance rates change?

Auto insurance for USPS employees isn’t as expensive as you might think. Postal employees are federal employees who go through several steps to ensure they can drive a federally insured vehicle.

Therefore, federal workers will need to have an excellent driving record to work for USPS or any government job. However, post office employee car insurance rates can change if they’re in an accident or convicted of a serious traffic violation, like reckless driving or DUI.

How does postal employee car insurance differ by area?

Urban or suburban postal employees are supplied with official vehicles by their local postal stations.

Postal trucks are automatically insured and registered by the U.S. Postal Service.

In rural, sparsely populated areas, the USPS has a rural carrier program that allows citizens to deliver mail for a substantial stipend.

Depending on how much time you have and how many deliveries you make, this stipend could equate to a decent income. Becoming a rural carrier does have consequences for your car insurance.

If you are involved in a car accident while carrying out your rural mail carrying duties, you will likely have to pay out-of-pocket. Most insurance companies prohibit the use of personal auto policies for commercial endeavors like mail delivery.

What coverages do you need for postal employee car insurance?

Do rural carriers have specific insurance requirements? Rural postal employees have to carry commercial auto insurance. Personal auto insurance won’t be acceptable.

If you have personal car insurance but don’t report your vehicle’s commercial use, your car insurance company may cancel your policy. The cancellation will leave you with the cost of damages and injuries.

Urban and suburban employees will acquire personal auto insurance for their vehicles, while the government covers postal employee vehicles.

Follow us through the next sections to learn what mandatory and optional coverages you’ll need as a postal employee.

Which types of USPS auto insurance coverage are mandatory?

We’ll keep it simple for you by listing the postal car insurance coverages you’ll need to stay insured.

  • Bodily Injury Liability – pays for injuries of the other party.
  • Property Damage Liability – pays for property damage to the party.
  • Uninsured Motorist Coverage – you will be covered if you’re in an accident with a person that doesn’t have car insurance.
  • Underinsured Motorist Coverage – This coverage helps if an at-fault driver doesn’t have enough coverage limits to pay for damages or injuries.
  • Personal Injury Protection – a standard coverage that pays for injuries and other expenses regardless of who’s at fault.

These car insurance coverages are common among state minimum requirements across the United States. All of these coverages are standard liability coverage requirements.

As a postal employee, you’ll need these for your vehicle. Rural postal employees will need liability auto insurance for their cars.

Which coverage types are optional?

Now let’s look at some additional coverage options. These may be optional for a vehicle you already own, but you may need them if you’re still making payments.

  • Collision Coverage – This coverage pays for damage from a collision regardless of fault.
  • Comprehensive Coverage – Another coverage that pays for damage to your vehicle, but comprehensive insurance pays for accidents that don’t involve a collision, such as a vehicle theft, vandalism, fires, flood, and falling objects.
  • Medical Payments – MedPay is a coverage targeted to pay strictly for medical bills.

In addition to these coverages, rural postal employees will need to invest in commercial car insurance for post office work. While this additional insurance coverage is mandatory, you should be able to save, considering your work for the government.

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What happens if you file a postal employee car insurance claim without commercial insurance?

Should you attempt to file a claim, you may be dropped from your policy.

Honesty is the best policy for avoiding this issue. Tell your provider about your intentions to become a rural carrier. If you are upfront about it, and your policy does not disallow it, you may maintain coverage.

However, be prepared for a significant hike in your premiums. They could go up by as much as 50 percent.

If you live in a rural area, your local Department of Motor Vehicles (DMV) likely provides license endorsements for rural carriers. Such an endorsement can lend credibility to your new gig and can influence your insurer to keep your premiums at a reasonable rate.

It can even help you get or maintain comprehensive and collision coverage. These coverages would otherwise be forfeited when driving your car for commercial purposes.

Are there USPS car insurance discounts?

We looked at the post office car insurance quotes at the beginning of the guide, and they appeared to be affordable. The rates are lower than expected because postal employees are low-risk drivers.

What happens when you factor in postal employee (government employee) discounts? We researched a few details about USPS employee car insurance discounts and pinpointed how companies provide extra savings. Here are the results.

Postal Employee Car Insurance Discounts by Company
Car Insurance CompaniesPostal Employee Discount Summary
AllstateNo Postal Employee Discount
EsuranceNo Postal Employee Discount
FarmersPostal Employee Discount Available
Liberty Mutual10%
MetLifePostal Employee Discount Available
Safe AutoNo Postal Employee Discount
SafecoNo Postal Employee Discount
The GeneralNo Postal Employee Discount
USAANo Postal Employee Discount
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Why don’t most companies participate in giving discounts to government workers like postal employees? Some car insurance companies provide discounts but only in select areas.

GEICO and Liberty Mutual appear to offer these discounts everywhere. Although Liberty Mutual provides more savings, GEICO is still cheaper.

So what do you do about saving on car insurance for employees? Check out these programs in the following sub-sections to learn how to reduce your premium payment amount for postal employee auto insurance.

TruStage™ Auto & Home Insurance Program

According to the USPS Federal Credit Union, USPS employees can enroll in the TruStage™ Auto and Home Insurance Program to save more money per year.

Joining the U.S. Postal Service Federal Credit Union can open up more discounted rates and help you buy postal employee car insurance at a discount.

GEICO Federal Employee Program

The name GEICO stands for Government Employees Insurance Company. GEICO auto insurance services are designed for the individual, but they specialize in providing affordable solutions to government employees.

GEICO gives discounts to postal employees, and they provide scholarships to federal and military recipients.

Postal Worker’s Path

According to the Bureau of Labor Statistics, the road to becoming a postal employee requires a high school diploma or any degree equivalent to a high school diploma (G.E.D.).

Postal employees can receive on-the-job training and earn over $52,000 per year.

Can you get postal employee car insurance if you’re unemployed?

Why is this important for postal employee car insurance? It’s essential because rural postal employees are technically freelancers who deliver mail to rural area residents. They use personal vehicles for commercial purposes.

If mail slows down, they may not receive compensation. This could put a postal employee at a tipping point between employed and unemployed. Despite the low-risk status of postal employees, auto insurance companies may issue higher rates if you don’t have a stable income.

Unstable income has become more frequent since the COVID-19 pandemic. The USA Government Information and Services reported that the CARES Act provides help for those affected by COVID-19, including postal employees. The support can take care of other bills while you’re maintaining your employment as a postal employee.

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Postal Employee Car Insurance: The Bottom Line

Postal employee car insurance is cheaper than the standard car insurance policy because postal employees are low-risk drivers. Auto insurance for postal employees varies by state.

State auto insurance laws can change the average cost because each state carries different coverage limits. Try to secure postal employee discounts to save money.

Frequently Asked Questions: Postal Employee Car Insurance

Before we wrap up the guide, let’s answer a few questions about postal employee car insurance. These answers will give you more insight into postal employee auto insurance and recap what you’ve learned.

#1 – How can you get auto insurance for USPS employees?

The federal government covers the USPS trucks provided to employees. However, rural USPS drivers will have to carry commercial auto insurance. Urban and suburban USPS employees have to insure personal vehicles through standard auto insurance.

#2 – Are postal employees considered essential workers?

Yes. Postal employees deliver essential items to recipients every day. Their work is critical, especially during the COVID-19 pandemic. Car insurance companies are taking extra care to get postal employees the car insurance savings they need.

#3 – Does commercial car insurance cover my vehicle as a postal employee?

As a rural postal employee, you’ll be using your vehicle to deliver mail. Commercial auto insurance can be attached to your personal auto insurance policy. Since you’ve bundled two different car insurance services, you may be eligible for a discount.

#4 – Why do insurers care about your occupation?

Like with most questions related to your insurance coverage, it boils down to risk. Insurance companies are continually looking for ways to better estimate the risk you pose as a driver and the likelihood that you’ll be involved in an incident that results in claims being filed.

Occupation is one way to do this. Some occupations are considered higher risk than others, but as we noted earlier, postal workers are typically considered to be in a low-risk occupation from the perspective of drivers on the road.

Ready to buy postal employee car insurance? Enter your ZIP code in the free online quote tool on this page to compare postal employee car insurance rates today.