Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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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: Apr 13, 2022

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Key takeaways...

  • Most federal employees are eligible for special car insurance discounts
  • USAA offers insurance to military personnel and their families
  • Most car insurance providers offer discounts for safe driving, good credit, and low claim status

If you’re a federal employee, you may wonder if you can get a special discount on car insurance. There is no simple answer. It all depends on the insurance policies in the state where you live.

Some car insurance companies only serve federal employees. Some insure only a specific type of federal employees. For example, only insure those who serve in the military. Others insure any federal employee.

Getting a federal employee discount on your car insurance does not require you to fulfill any special requirements other than that you work for the federal government. For instance, it does not matter what your department you work in, your position in it, or the level of salary you draw.

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How does federal car insurance compare to regular car insurance?

Generally, what affects your car insurance is where you live. It does not matter who you work for – the federal government, a corporation, or a small business.

Although each state requires minimum vehicle insurance, the amount will vary from one part of the country to another.

Also, if you financed the purchase of your car, you still have to buy the same comprehensive and collision insurance coverage as your lender.

In this sense, there is not much difference between the insurance regulations between federal car insurance and regular car insurance.

But if you are a federal employee, you may be eligible for specific insurance discounts.

So, for this reason alone, it’s advisable to shop for insurance only from an insurer that provides special discounts.

Many car insurance companies, for example, give those who have served in the military special discounts and extras.

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Can an employer provide federal car insurance?

The idea that the federal employer might be able to provide car insurance still persists because that option once existed. Unfortunately, economic changes have removed that option.

What is possible now is that the employer can recommend the best car insurance company for you to purchase car insurance.

This policy of allowing recommendations has resulted in many insurance companies negotiating special deals with federal employers if they send someone to them.

The best place to find out about these deals is to talk to the Human Resources department.

Although a tenuous relationship still exists between a federal employer and auto insurance companies, it does not go beyond an informal recommendation. For instance, you cannot have your car insurance premiums deducted directly from your paycheck.

What kind of discounts is a federal employee eligible for?

Finally, what most people want to know is the nature of the discounts available for those eligible to apply for a federal employee car discount.

Generally speaking, the discounts include low mileage discounts, model citizen discounts, and no claims bonus discounts.

Other discounts exist, but these are the ones most commonly offered by the major auto insurance companies.

The names for these discounts may vary from one insurance company to the next, but the concepts remain the same.

You are eligible for a low mileage discount if you drive a limited number of miles.

For example, military personnel may be assigned to bases overseas and only drive their cars when they return home to visit their family, friends, and relatives.

You are eligible for a model citizen discount if you have a regular lifestyle. For instance, you are a safe driver, are married, and own your own home.

The car insurance company perceives you as someone who is not likely to drink and drive, blatantly discard the rules of the road, or act in a way that makes it necessary to file a claim.

This is similar to good student discounts, safe driver discounts, and other similar discounts for drivers who can be classified as low insurance risks.

Finally, you are eligible for a no claims discount if you don’t file a claim within specific periods of time. Car insurance companies like to reward you for driving safely for established milestones.

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  1. https://www.usa.gov/Federal_Employees/Federal_Employees_Gateway.shtml
  2. https://en.wikipedia.org/wiki/Federal_government_of_the_United_States
  3. https://www.geico.com/save/discounts/federal-employee-discounts/
  4. https://www.trustedchoice.com/f/p/largest-auto-insurance-companies/
  5. https://www.usaa.com/inet/ent_logon/Logon?redirectjsp=true
  6. https://www.cdc.gov/motorvehiclesafety/impaired_driving/impaired-drv_factsheet.html
  7. https://www.nationwide.com/defensive-driving-discount.jsp