Cheap Auto Insurance for Government Employees in 2026 (Big Savings With These 10 Companies)

The 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

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.

#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.

#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.

#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.

#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

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.

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

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.

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

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.

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.