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Federal employees hold many important roles in the workforce. They help Americans access healthcare and visit national parks, deliver the mail and keep the trains running, seek justice for victims, protect consumers and the environment, develop new technology, and more. Some car insurance companies reward these employees for their service through policy discounts.
I researched the best insurance companies for federal employees based on average premiums, coverage options, third-party ratings, and specialized discount opportunities. I found that USAA and GEICO stand out as the cheapest options for these workers. Travelers, Progressive, and Farmers are also good choices for certain federal employee types and needs.
Keep in mind that your individual rate may differ from the average premium data provided, so you should get custom quotes. You can use this list to jumpstart your research and find an affordable car insurance policy for your needs.
How we evaluate products
FinanceBuzz researches a number of factors in each auto insurance provider to create our reviews. These factors include cost and discounts, complaints and customer satisfaction, coverage, and ease of use. We also gather information from sources such as Insurify, J.D. Power, AM Best, the National Association of Insurance Commissioners (NAIC), and the Better Business Bureau to ensure we provide the most useful information to our readers.
Best car insurance for federal employees
| Company | Excellent for | Average monthly full coverage cost | Average monthly liability-only cost |
| USAA | Special agents and U.S. Department of State employees | $99 | $50 |
| GEICO | Generous discounts | $142 | $111 |
| Travelers | Affinity discount program | $190 | $95 |
| Farmers | Federal employee association members | $226 | $109 |
| Progressive | Federal employees who travel | $171 | $105 |
USAA
- AM Best: A++ (Superior)
- J.D. Power claims satisfaction: 726/1,000 (study average 697)
- BBB: A+
- NAIC complaints: 0.97 (Private Passenger)
USAA is a highly rated insurance company that offers affordable premiums and a variety of discounts to its members. Membership is open to certain federal employees and their families, including special agents for government organizations like the Federal Bureau of Investigation and Secret Service, certain U.S. Department of State employees, and Merchant Marine Academy staff and faculty.
USAA offers a usage-based program called SafePilot that is highly rated by J.D. Power. It offers up to a 10% enrollment discount and ongoing premium savings of up to 30% at renewal.
The company boasts the top financial strength grade from AM Best. It also received an above-average score in the J.D. Power 2024 U.S. Auto Claims Satisfaction Study. Plus, USAA's car insurance rates are among the most affordable, especially for teens and senior drivers.
- Excellent third-party ratings
- Affordable rates and multiple discount opportunities
- Highly-rated telematics program
- Somewhat high NAIC complaint index
- Poor Trustpilot rating
- Not all federal employees qualify for membership
Learn more in our USAA review.
GEICO
- AM Best: A++ (Superior)
- J.D. Power claims satisfaction: 692/1,000 (study average 697)
- BBB: A+
- NAIC complaints: 0.75 (Private Passenger)
In most states, GEICO offers a couple of discount options for federal employees: the Eagle discount, which is available to active and retired federal employees in GS-7 positions and above, and a membership discount for people who belong to certain federal groups.
While it doesn't allow combining these discounts, GEICO offers a long list of other discounts that may appeal to federal workers, including a clean driving record discount, bundling discounts, and various vehicle equipment discounts. Highly rated by J.D. Power, the company's telematics program, DriveEasy, also offers a discount for safe driving.
Plus, GEICO made the list of the best car insurance companies because of its affordable rates.
- Special discounts for federal employees
- Top financial strength grade from AM Best
- Cheap premiums, especially for liability-only coverage
- High volume of complaints with the BBB
- Slightly below-average claims satisfaction rating from J.D. Power
- Only offers a few coverage add-ons
Learn more in our GEICO review.
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Travelers
- AM Best: A++ (Superior)
- J.D. Power claims satisfaction: 684/1,000 (study average 697)
- BBB: A+
- NAIC complaints: 3.96 (Private Passenger)
Travelers offers discounts to members of some federal employee associations through its affinity program. For example, members of certain credit unions, including PenFed, can get a discount on Travelers auto insurance. While it's not a federal association, the American Society of Civil Engineers participates in the program, and federal engineers may be members. Travelers doesn't publish a complete list, so you should check with your member organization.
There are several other general savings opportunities, including continuous insurance, early quote, hybrid/electric car, and multicar discounts. Travelers also offers great coverage options, including extended transportation expenses coverage, which helps federal employees continue to work and travel after an accident.
However, average premiums before discounts are higher than those of several competitors. Plus, while J.D. Power ranked Travelers on top for customer satisfaction in New York, the company scored below average in many other regions.
- Affinity discount program for members of some associations
- Many coverage options and general discounts
- Top financial strength grade from AM Best
- Below-average claims satisfaction rating
- Higher-than-average NAIC complaint index
- Poor J.D. Power customer satisfaction ratings in many regions
Learn more in our Travelers review.
Farmers
- AM Best: A (Excellent)
- J.D. Power claims satisfaction: 706/1,000 (study average 697)
- BBB: A+
- NAIC complaints: 0.99 (Private Passenger)
Farmers offers discounts to members of some federal employee groups through the Farmers GroupSelect program. If your organization doesn't work with Travelers, it may provide discounted auto insurance through Farmers.
For example, members of the Government Employees' Benefit Association can save on their insurance premiums when taking advantage of the Travelers GroupSelect program. The American Federation of Government Employees also participates.
Farmers provides a wide range of coverage options, including broad loss of use coverage, roadside service, and a personal umbrella policy. The company also offers a variety of general discounts, including those for completing a defensive driving course, bundling your policies, or staying accident free.
- Works with several major federal employee associations
- Above-average J.D. Power claims satisfaction rating
- Many optional coverages to customize your policy
- Higher premiums relative to competitors
- Poor J.D. Power customer satisfaction ratings in some regions
- Not available in all states
Learn more in our Farmers review.
Average rate:
Progressive
- AM Best: A+ (Superior)
- J.D. Power claims satisfaction: 672/1,000 (study average 697)
- BBB: A+
- NAIC complaints: 0.97 (Private Passenger)
Progressive doesn't offer a specific discount for federal employees, but the company does offer coverage options and features that may appeal to federal employees.
You can opt to buy trip interruption coverage and roadside assistance coverage to protect yourself during road trips, and you can get discounts on rental cars, recreation, and more through the PerkShare program for Progressive customers. The company also has three types of accident forgiveness benefits in most states.
If you drive for your job, Progressive can even help you build a customized commercial policy. It was the top commercial auto insurer in the U.S. by direct premiums written in 2024.
- Several discounts and a usage-based program
- Extra perks and savings opportunities for policyholders
- Affordable commercial car insurance
- Higher rates than several competitors for families with a teen driver
- Below-average J.D. Power claims satisfaction rating
- No specific federal employee discount
Learn more in our Progressive review.
Who are considered federal employees for car insurance discounts?
Federal employees are workers employed by the federal government. According to the Pew Research Center, they made up about 1.87% of all civilian workers in November 2024.
Car insurance companies that offer discounts to federal employees each have specific requirements for earning them. For example, GEICO offers the Eagle discount to federal employees who have a GS-7 position or above. These usually include some entry-level employees and others with at least a mid-level technical job or first-level supervisory role.
Besides military members, veterans, and their families, USAA accepts employees of these agencies as members:
- Defense Criminal Investigation Services
- Drug Enforcement Administration
- Federal Bureau of Investigation
- Naval Criminal Investigative Service
- Secret Service
- U.S. Air Force Office of Special Investigations
- U.S. Army Criminal Investigation Command
- U.S. Department of State (only certain foreign service workers)
- Merchant Marine Academy (only current faculty and staff)
You could also get a discount from some auto insurance companies for belonging to certain federal employee associations, like:
- American Federation of Government Employees
- Government Employees' Benefit Association
- National Treasury Employees Union
Not all car insurance companies disclose discount amounts for federal employees, but some insurers offer federal employee discounts ranging from 12% to 23%.
Other ways to save on coverage as a federal employee
Aside from discounts and affinity programs, federal employees can save money on car insurance in a handful of different ways.
- Bundle your policies: Many insurance companies offer a discount when you purchase multiple policies, like an auto policy and a homeowners policy.
- Pick coverages and limits wisely: Consider the types of car insurance and coverage limits you need so you don't pay for excess coverage. For example, you might opt for a liability-only policy for an old vehicle of little value.
- Choose a high deductible: You can lower your car insurance premiums by choosing a high deductible. Just make sure to keep enough cash on hand to cover your share of the cost if you cause an accident.
- Enroll in a usage-based program: Usage-based programs use technology to track your driving behavior and reward your safe driving habits with a discount. You might save up to 40% on your coverage if you're a cautious driver.
- Take advantage of other discounts: Check whether you're eligible for vehicle equipment discounts, clean driving record discounts, student discounts, driver education discounts, low-mileage discounts, loyalty discounts, and other savings opportunities.
- Compare quotes: Every auto insurer prices policies differently, so it's a good idea to collect quotes from a handful of companies and choose the best deal for the coverage you need.
FAQs
How do I know if an insurer offers government employee discounts?
Many insurance companies publish a list of discounts online. You can also check your employee association's website for insurance discounts or ask your insurance agent about discounts for federal employees.
What are the recommended coverage types for federal employees?
Federal employees need state minimum coverage to drive legally. This typically includes bodily injury liability coverage and property damage coverage. Some states also require other coverages, such as personal injury protection or medical payments coverage.
Collision and comprehensive coverage are usually optional if you don't have a car lease or loan, but many drivers purchase these coverages for added protection.
Can federal employees get USAA car insurance?
Some federal employees qualify for USAA membership, including special agents and certain U.S. Department of State officials. The insurer is also widely known for providing coverage to military members and veterans.
Bottom line
If you work for the federal government, you might get a discount on car insurance. USAA, GEICO, Travelers, and Farmers offer discounts for some types of government employees. But you should compare car insurance quotes from other companies as well. Every insurer calculates rates differently, and you may find that the cheapest premium offer comes from a company with no specific government employee discount.
Average rate:
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