Car Insurance Discounts for Federal Employees

Your occupation is one of the things that insurers consider when setting your premiums. It goes some way to determine your risk, and there are also discounts offered for specific organizations and professions. Some of the biggest occupation-based discounts are targeted toward federal employees, and it’s those that we will look at here.

Why are Federal Employees Given Car Insurance Discounts?

Car insurance companies offer discounts and reductions for numerous reasons.

Oftentimes, it’s about rewarding positive, risk-reducing behavior. For example, they may offer a discount for drivers who complete a defensive driving course, knowing that it reduces the risk of accidents and the likelihood of a claim. 

Other times, the discounts are required by law. Such is the case with discounts offered for the use of daytime running lights in the state of New York.

As far as occupation discounts are concerned, it’s often a mixture of the two. They can be offered by virtue of the applicant being part of a discounted member organization or because their occupation places them in a lower risk category.

Federal employees are a great example of this.

They’re not racecar drivers. They don’t use their cars to transport expensive equipment long distances, and they don’t leave their vehicles in high-risk parking lots, such as outside pubs and clubs.

Furthermore, the fact they work for the federal government likely means they have undergone strict vetting procedures. In that sense, the government has already done some of the work.

How Much is a Federal Employee Discount?

On average, an employee of the federal government will pay between 5 and 10% less for their car insurance when compared to other occupations.

It’s worth noting, however, that these discounts differ considerably from state to state and that your occupation isn’t the only determining factor, nor is it the most important one. The price rises associated with speeding tickets, at-fault accidents, and old/unsafe cars will likely offset any savings you make by working for the government.

Which Companies Offer Car Insurance to Federal Workers?

All insurers accommodate federal workers but there are no companies that cater solely to this occupation. To find the best rates, you simply have to compare quotes from many different providers, covering national insurers like Allstate, Geico, and Progressive, as well as region-specific companies like Erie Insurance.

When completing your application, provide as much information as you can and be 100% honest and upfront. A few white lies may reduce those premiums now, but they could lead to costly problems in the future, including canceled policies and rejected claims.

Along with your occupation, an insurer will consider all the following:

Your Age

Between the ages of 16 and 25, your car insurance rates fall sharply with every birthday. Young drivers take more risks and lack experience. They are more likely to make claims and cost the insurer, so they are charged the highest rates of any demographic.

The reductions continue until you reach your senior years, at which point they creep back up again. Your age is one of the few things you can’t change, and yet it’s something that can have a massive impact on your insurance quotes.

Your Driving History

This is an obvious one, but it’s also incredibly important. A single DUI could cause your rates to skyrocket, and similar increases can be seen following at-fault accidents and speeding tickets.

Stay safe behind the wheel. Don’t speed, don’t drive while under the influence of drugs or alcohol, and before long, you’ll be able to reap the benefits with low-cost car insurance.

Your Car

Does your car have airbags, anti-lock brakes, daytime running lights, and anti-theft features? If not, you could be missing out on some substantial savings. Features that reduce the risk of crashes, injuries, theft, and vandalism will save you money in the long-term.

Your Location

In Maine, the price of minimum coverage car insurance is around $300, but this number increases to $800 for full coverage. It’s one of the cheapest states for car insurance and it’s s stark contrast to Louisiana and Michigan, where full coverage rates exceed $2,000 on average.

Premiums are also affected by the rates of theft, accidents, vandalism, and animal collisions in your area.

Your Status

Are you married or single? Are you a renter or a homeowner? These seemingly minor things can impact the likelihood of someone making a claim, which is why married homeowners pay more than single renters, for example.

Your Credit Score

Statistically, drivers with poor credit scores have more accidents and make more claims than drivers with excellent scores. As a result, all insurers will check your score and use this to determine your premiums. 

With a few simple changes, including paying down more debt, keeping all cleared credit cards, increasing credit limits, and avoiding any new applications, you could save a few percentage points on your insurance.