Cheap Auto Insurance for Government Employees in 2025 (Big Savings With These 10 Companies)
Safeco, State Farm, and Travelers offer cheap auto insurance for government employees at just $38 per month. These providers offer government employee auto insurance discounts like civil servant savings, EFT perks, and federal agency rates, ideal for job-based savings and affordable coverage for public workers.
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Jimmy McMillan
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Jimmy McMillan is an entrepreneur and the founder of HeartLifeInsurance.com, an independent insurance brokerage. His company specializes in insurance for people with heart problems. He knows personally how difficult it is to secure health and life insurance after a heart attack. Jimmy is a licensed insurance agent from coast to coast who has been featured on ValientCEO and the podcast Modern Li...
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UPDATED: Mar 23, 2025
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Mar 23, 2025
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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1,731 reviewsThe top choices for cheap auto insurance for government employees are Safeco, Travelers, and State Farm, with rates starting as low as $38 per month.
Safeco is the best overall for cheap auto insurance for government employees, with low rates, while State Farm offers union discounts and Travelers adds flexible payments.
Our Top 10 Company Picks: Cheap Auto Insurance for Government Employees
| Company | Rank | Monthly Rates | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | $38 | A | Exclusive Discounts | Safeco |
 | #2 | $47 | B | Comprehensive Coverage | State Farm |
 | #3 | $53 | A++ | Customizable Policies | Travelers |
 | #4 | $61 | A+ | Personalized Service | The Hartford |
 | #5 | $62 | A | Specialized Coverage | American Family |
 | #6 | $63 | A+ | Affordable Rates | Nationwide |
 | #7 | $65 | A+ | Membership Benefits | Amica |
 | #8 | $76 | A | Discount Options | Farmers |
 | #9 | $87 | A+ | Enhanced Savings | Allstate |
 | #10 | $96 | A | Customer Service | Liberty Mutual |
These companies combine affordability with job-specific perks, making them top picks among the best auto insurance companies for state employees seeking maximum value.
Simply enter your ZIP code in our free comparison tool to start comparing public-sector auto insurance right now.
- Safeco, State Farm, and Travelers offer cheap government employee insurance
- On average, public sector workers pay $38 per month for auto insurance at Safeco
- Public-sector workers may need special coverage for personal vehicle use on the job
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#1 – Safeco: Top Overall Pick
Pros
- Competitive Rates: Safeco provides cheap premiums, especially with continued government employee’s discount (Read more: Safeco auto insurance review).
- Government Employee Discounts: Since Safeco auto insurance discounts come explicit for government employees, you can get premium reduction.
- Exceptional Customer Service: For public sector employees,> Safeco’s quick and effective customer service team make for a seamless process.
Cons
- Limited Availability: Safeco isn’t available in every state, which can limit choice for provincial workers.
- Coverage Restrictions: For a variety of reasons, some public sector employees have limited options for coverage or restricted eligibility criteria.
#2 – State Farm: Best for Large Agent Network
Pros
- Large Network of Agents: State Farm works with more than 18,000 insurance agents throughout the U.S., who can help you choose the right coverage options and amounts.
- Safe Driver Rewards Programs: State Farm’s Drive Safe & Save and Steer Clear programs aim to promote safe driving practices and reduce the risk of accidents among risky drivers.
- Various Discounts: State Farm offers discounts for things like being a multi-car household, multi-policy, and safe driving. Learn more about the State Farm’s discounts in our State Farm auto insurance review.
Cons
- Limited Online Service: State Farm’s online service offerings may not be as robust or user-friendly as some other government employee insurance providers.
- No 24/7 Customer Service: Customers may need to wait until the next business day to speak with a representative.
#3 – Travelers: Best for Payment Flexibility
Pros
- Extensive List of Discounts: Travelers offers government employee, safe driver, multi-policy, and vehicle safety discounts. Learn more in this Travelers auto insurance review.
- Flexible Payment Plans: Travelers allows government employees to choose from multiple payment options, e.g., monthly installments, making it easier to manage their policy.
- Convenient Mobile App: Travelers’ mobile app includes technological tools to access policies as well as filing claims and roadside assistance.
Cons
- Rates Can Vary: Government employees residing in regions with higher insurance costs may find that Safeco’s rates are not the cheapest option available to them.
- Limited Local Agents: In some areas, finding a local Travelers agent may be challenging, potentially impacting customer service quality.
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#4 – The Hartford: Best for Specialized AARP Coverage
Pros
- Specialized Coverage: The Hartford has specialized coverage that caters to the needs of government employees 50 and older.
- AARP Discounts: The Hartford has agreements with AARP to provide discounts for those who are government employees with an AARP membership, therefore there are potential savings on premiums.
- Financial Stability: The company has received an A+ (Superior) rating from A.M. Best for financial strength. Learn more in our Hartford auto insurance review.
Cons
- Higher Than Average Complaint Index: According to the NAIC, The Hartford has received a higher than usual number of complaints for insurance companies of its size.
- Not a Great Choice for Drivers Under 50: The Hartford’s insurance products are exclusive to drivers 50 and older, making it a less suitable option for younger drivers.
#5 – American Family: Best for Positive Customer Feedback
Pros
- Customizable Policies: American Family allows government employees to tailor their coverage options to meet their specific insurance needs. Learn more in our American Family auto insurance review.
- Excellent Customer Ratings: American Family enjoys consistently positive feedback for its attentive customer service and claims process.
- Bundling Discount: American Family also offers up to 23% off to public sector workers who bundle their auto and home insurance policies.
Cons
- Not Widely Available: Government employees in some areas may need to look elsewhere for coverage as American Family car insurance is only available in 19 states.
- Limited Add-ons and Endorsements: While some competitors provide a wide range of optional coverages to choose from, American Family offers a few riders that are deemed most essential.
#6 – Nationwide: Best for Convenient Mobile App
Pros
- Multi-Policy Discounts: Nationwide offers savings for government employees who bundle auto with home or renters insurance. See how much you can save in our Nationwide auto insurance review.
- Excellent Customer Service and Claims Handling: Nationwide earned above-average marks in J.D. Power’s auto satisfaction study and an A+ from A.M. Best for financial strength.
- Mobile App Features: Nationwide’s mobile app allows you to pay your bill, print ID cards, make policy changes, file and track claims directly from your phone.
Cons
- Pricing Discrepancy: Government workers may find lower rates than expected due to pricing factors based on where they live and their driving history.
- Difficult Quotes Process: Nationwide may require more detailed information, such as driving history, prior insurance coverage, etc.
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#7 – Amica: Best for Customer Service
Pros
- Outstanding Financial Stability: Amica has an A+ financial strength rating from AM Best. The company also holds an A+ rating with the BBB. (Read more: Amica Auto insurance review).
- Dividend Policies: Instead of fixed premiums, dividend policies allow the insured to receive their share of the insurer’s surplus funds.
- High Customer Satisfaction Ratings: Amica ranks high for auto insurance claims customer satisfaction in J.D. Power’s auto insurance study.
Cons
- State Availability: Amica does not sell auto insurance coverage in Hawaii.
- No Telematics Program: Amica customers may miss out on the potential savings available through participation in a usage-based program.
#8 – Farmers: Best for Comprehensive Coverage
Pros
- Variety of Coverage Options: Farmers lets customers customize coverage to protect against a range of road risks. Find more in our Farmers auto insurance review.
- Additional Discounts: Farmers offers additional discounts for EFT payments, e-documents, and home ownership.
- Strong Financial Stability: Farmers has a long-standing reputation, and its stature ensures that government employees know their claims will be covered.
Cons
- Rates Vary by Location: Farmers’s premiums can be higher due to geographic location, which can translate to more expensive prices for some government employees.
- No Auto Coverage in Florida: Due to the increased risk of natural disasters in the area, government employees in Florida may not be able to renew their policies upon expiry.
#9 – Allstate: Best for Usage-Based Program
Pros
- Wide Range of Coverage Options: Allstate has a lot of coverage options available like roadside coverage and rental car reimbursement so government employees can build a policy that fits what they need.
- Innovative Features: Allstate Drivewise, an innovative usage-based program, incentivizes safe driving habits and can lead to additional savings for government employees.
- High Financial Strength: The financial strength of Allstate ensures timely claims for government employees. Find more in our Allstate auto insurance review.
Cons
- Select Availability: Allstate government employee insurance is available only in 21 states and Washington, D.C.
- Rates Higher Than the National Average: For example, in densely populated urban areas, prone to high rates of accidents or severe weather events, Allstate’s premiums may be higher.
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#10 – Liberty Mutual: Best for Intuitive Website
Pros
- 12-Month Policy: Government employees can secure lower rates with Liberty Mutual’s 12-month auto policies (Read more: Liberty Mutual auto insurance review).
- Accident Forgiveness Discount: Liberty Mutual’s accident forgiveness program helps government employees avoid a rate increase following their first accident.
- User-Friendly Website: Liberty Mutual has an easy-to-use website where government employees can manage their policies, file claims, and access support services.
Cons
- High Premiums: At $96 per month, Liberty Mutual auto insurance rates for public sector employees are some of the highest from all the companies we’ve analyzed.
- Not All States Have Offices: While Liberty Mutual is a nationwide insurer, its physical presence may not extend to every state.
Cheap Auto Insurance for Government Employees by Coverage Level
The workforce includes public sector workers, who work for the government, and private sector workers, who work for private companies. Public sector roles include IRS agents, teachers, firefighters, and postal workers—many of whom use personal vehicles for work and may need specialized auto insurance.
The average cost of auto insurance can vary widely from company to company, but there are some companies that generally come in at a lower price point than others.
Government Employees Auto Insurance Monthly Rates by Coverage Level
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| $87 | $228 |
| $62 | $166 |
| $65 | $215 |
| $76 | $198 |
| $96 | $248 |
| $63 | $164 |
 | $38 | $101 |
| $47 | $123 |
| $61 | $161 |
| $53 | $248 |
Safeco, Travelers, and State Farm make the list of most affordable insurance companies, but that doesn’t mean they will necessarily be the most affordable option for you.
Government employees often get lower auto insurance rates. For example, federal workers may save with job-based or union discounts.Jeff Root Licensed Insurance Agent
Your age, driving record, ZIP code, and many other things can impact your premiums, as well as any discounts that may be available.
Auto Insurance Costs by State: Impact on Government Employee Budgets
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.
Auto Insurance Rates as a Percentage of Income by State
| States | Annual Rate | Annual Income | Insurance as % of Income |
|---|---|---|---|
| Alabama | $837 | $33,535 | 2% |
| Alaska | $1,050 | $49,756 | 2% |
| Arizona | $962 | $34,321 | 3% |
| Arkansas | $900 | $33,929 | 3% |
| California | $952 | $43,978 | 2% |
| Colorado | $940 | $43,609 | 2% |
| Connecticut | $1,133 | $56,186 | 2% |
| Countrywide | $982 | $40,859 | 2% |
| Delaware | $1,216 | $40,256 | 3% |
| District of Columbia | $1,324 | $59,936 | 2% |
| Florida | $1,209 | $38,350 | 3% |
| Georgia | $991 | $34,558 | 3% |
| Hawaii | $858 | $41,801 | 2% |
| Idaho | $673 | $33,600 | 2% |
| Illinois | $854 | $42,256 | 2% |
| Indiana | $729 | $36,364 | 2% |
| Iowa | $684 | $39,820 | 2% |
| Kansas | $851 | $41,634 | 2% |
| Kentucky | $917 | $33,237 | 3% |
| Louisiana | $1,364 | $37,787 | 4% |
| Maine | $689 | $37,049 | 2% |
| Maryland | $1,096 | $46,875 | 2% |
| Massachusetts | $1,108 | $50,366 | 2% |
| Michigan | NA | $36,419 | 0% |
| Minnesota | $857 | $42,516 | 2% |
| Mississippi | $958 | $31,365 | 3% |
| Missouri | $845 | $36,690 | 2% |
| Montana | $869 | $36,041 | 2% |
| Nebraska | $806 | $43,277 | 2% |
| Nevada | $1,083 | $36,477 | 3% |
| New Hampshire | $796 | $48,280 | 2% |
| New Jersey | $1,379 | $49,983 | 3% |
| New Mexico | $920 | $33,358 | 3% |
| New York | $1,328 | $47,446 | 3% |
| North Carolina | $768 | $35,099 | 2% |
| North Dakota | $768 | $51,311 | 2% |
| Ohio | $767 | $37,490 | 2% |
| Oklahoma | $986 | $40,879 | 2% |
| Oregon | $894 | $36,445 | 2% |
| Pennsylvania | $950 | $42,414 | 2% |
| Rhode Island | $1,257 | $42,585 | 3% |
| South Carolina | $937 | $33,295 | 3% |
| South Dakota | $744 | $41,825 | 2% |
| Tennessee | $856 | $36,909 | 2% |
| Texas | $1,066 | $41,090 | 3% |
| Utah | $853 | $33,566 | 3% |
| Vermont | $747 | $42,267 | 2% |
| Virginia | $836 | $43,904 | 2% |
| Washington | $952 | $45,143 | 2% |
| West Virginia | $1,032 | $32,277 | 3% |
| Wisconsin | $717 | $39,433 | 2% |
| Wyoming | $844 | $49,918 | 2% |
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. Learn more about South Carolina auto insurance.
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.
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Auto Insurance Coverage for Government Employees
Public sector workers need the same basic coverages as everyone else, including:
- Liability Coverage: 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 Coverage: 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 Coverage: 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 auto insurance 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.
Auto Insurance Discounts for Government Employees
Discounts from insurance companies can range greatly. Each company has their own specific set of discounts which they offer based on their own internal underwriting guidelines.
If you believe you qualify for specific discounts such as a federal employee auto insurance 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.
Auto Insurance Discounts for Government Employees
| Insurance Company | Available Discounts |
|---|---|
| Exclusive Low-Cost Multi-policy, Continuous insurance options, Safe driver benefits, Online quote opportunities |
| Customized Affordable Bundle, Paid-in-full convenience, Safe driver discounts, Electric/hybrid vehicle offers |
| Personalized Assistance Programs, Loyalty rewards, Generational benefits, Defensive driving course savings |
| Special Financial Aid, Accident-free rewards, Safe driver advantages, Easy Pay sign-up options |
| Unique Budget-Friendly Policies, Exclusive group savings, Homeowner advantages, Good student discounts |
| Exclusive Financial Support, Multi-vehicle savings, Safe driver benefits, Good student perks |
| Special Multi-policy, Multi-car, Defensive driving, Safety features for Eligible Employees |
| Tailored Budget-Friendly Multi-policy, Safe driving incentives, Good student rewards, Hybrid/electric vehicle discounts |
| Dedicated Supportive Policies, Electronic payments convenience, Good student benefits, Safe driver incentives |
| Unique Assistance Programs, Defensive driving course, Good student benefits, Multi-car options |
Public sector workers such as civil servants, teachers, firefighters, postal employees, and police officers often qualify for cheap auto insurance for government employees through occupation specific and union based discounts. Many insurers offer these savings because public employees tend to file fewer claims and present lower risk.
Some workers have unique needs, such as coverage for personal vehicle use on the job or while deployed overseas. Rural postal workers may require business use policies, and shift work can also affect insurance rates.
Add business-use coverage if you drive for government work. Job-based and union discounts can also lower your premium.Aremu Adams Adebisi Feature Writer
To find the best options, government employees should check with their union, speak to insurance agents, and compare quotes online.
Saving Money on Auto Insurance for Government Employees
Public sector workers come in all shapes and sizes. Many spend long hours driving for both work and personal reasons, increasing their exposure to road risks. Cheap auto insurance for government employees helps reduce costs while offering comprehensive auto insurance that covers both accident-related and non-collision damages tailored to their unique driving needs.
Public sector workers can quickly find the best rates by using auto insurance comparison sites and asking insurers about occupation-based discounts. There’s always a chance for you to save money while finding the coverage you need. Enter your ZIP code to find the best rate for auto insurance for public sector workers.
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Frequently Asked Questions
Can I combine a federal employee car insurance discount with other discounts?
Yes, most insurers allow you to stack the federal employee car insurance discount with other discounts like safe driving, bundling, or low mileage, further reducing your overall premium.
Is there any special auto insurance available for public sector workers?
Yes, some insurance companies offer specific auto insurance policies tailored to public sector workers. These policies may include unique benefits or discounts that cater to the needs of individuals working in the public sector.
Enter your ZIP code below to compare government employees insurance quotes from the top providers near you.
Who qualifies for government employee car insurance discounts?
Eligibility varies by insurer, but most discounts apply to full-time government employees, including those who qualify for the best auto insurance for firefighters.
What qualifies someone for cheap car insurance for civil servants?
Civil servants typically qualify if they work for a federal, state, or local government agency, such as teachers, police officers, postal workers, or administrative staff. Proof of employment may be required to access special discounts.
Do government contractors qualify for the same car insurance discounts as government employees?
Not always. While some insurers extend discounts to contractors working with government agencies, most discounts require direct employment with a federal, state, or local government entity. Always verify eligibility with the insurer.
Can car insurance for federal employees be combined with other discounts?
Many providers offering the best auto insurance for federal employees allow stacking with safe driving, multi-policy, or low mileage discounts for added savings.
Who qualifies as a public sector worker for these specialized auto insurance policies?
Public sector workers generally include individuals employed by government agencies at various levels, such as federal, state, or municipal employees. This can include professions like police officers, firefighters, teachers, social workers, public administrators, and more.
Can retired federal employees still access federal employee car insurance discounts?
Yes, many insurers extend federal employee car insurance discounts to retired federal workers, especially if they maintain membership in federal employee associations or unions. Eligibility may vary, so it’s best to confirm with each insurer.
What is the best auto insurance for postal workers?
When it comes to auto insurance for postal employees, 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.
Does government employee car insurance cover personal vehicle use for work duties?
Typically, personal policies do not cover accidents while using your car for job-related tasks. Some companies offer add-on business-use coverage for government employees who use personal vehicles during work hours.
Can I get union-related discounts through a government employee insurance company?
Yes, many government employee insurance companies offer affinity discounts for members of unions or associations, such as teacher or police unions, helping reduce rates further.
Does Progressive offer a federal employee discount on auto insurance?
Progressive doesn’t offer a specific federal employee discount but provides savings through multi-policy, safe driver, and usage-based insurance programs like Snapshot.
Can public sector workers combine specialized auto insurance with other discounts or benefits?
Yes, public sector workers may be able to combine specialized auto insurance with other discounts or benefits. It is advisable to check with the insurance provider to understand the available options for stacking discounts and maximizing benefits.
Is auto insurance for postal workers provided by the USPS when using a government-issued vehicle?
Yes, if you’re driving an official USPS vehicle, the government provides insurance coverage, so you do not need a separate personal or commercial policy for work-related use of that vehicle.
Use our free online quote tool to get the cheapest auto insurance for postal workers.
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Jimmy McMillan
Licensed Insurance Agent
Jimmy McMillan is an entrepreneur and the founder of HeartLifeInsurance.com, an independent insurance brokerage. His company specializes in insurance for people with heart problems. He knows personally how difficult it is to secure health and life insurance after a heart attack. Jimmy is a licensed insurance agent from coast to coast who has been featured on ValientCEO and the podcast Modern Li...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.