Auto Insurance for Postal Employees (Rates + Discounts)

Many postal employees walk long miles as they fulfill their duties, and even more of them need to drive long miles as they make their ways to work. So what type of postal employee car insurance do you need?

As they spend time on the nation’s roads, these vital workers need to have the shield of adequate and affordable car insurance coverage.

Luckily, postal workers are usually eligible for several auto insurance discounts. As we look at these savings possibilities, we’ll also show you how easy it is to save even more cash by using car insurance comparison shopping websites.

Ready to find the best auto insurance for postal employees? Compare auto insurance options by entering your ZIP code into our free rate tool above.

Auto Insurance & Postal Workers: How It Can Change Your Rates

Postal workers, regardless of whether they deliver the mail or work in a back room, can qualify for special discounts on their car insurance. Not all companies offer these discounts, which makes it important to shop around and compare the options.

Now, let’s delve into auto insurance for postal workers.

Why do insurers ask about your occupation?

Insurance companies peruse the topic of risk, namely by evaluating statistics that have been established over the years.

It stands to reason that some jobs are statistically less dangerous than others.

This extends to being in an automobile as well. For postal workers, for example, especially ones who use their own vehicles, that is an increased amount of time in a vehicle as opposed to office-bound professions.

Telling Your Insurer When You Change Jobs

Insurance companies look at the failure to disclose a job change as a valid reason to terminate coverage. So a short answer to whether you should inform your insurance provider of a career change is yes. Your job can affect your car insurance.

You would tell an insurance provider if you were switching your ZIP code, wouldn’t you? Whenever faced with a Choice of being honest or not, stick on the side of honesty.

How does your job affect your auto insurance?

An unfortunate and anachronistic trend is lower-income workers being charged higher premiums for liability coverage. This is because insurers believe a low-income job adversely affects the probability of being able to pay a claim.

The New York Public Interest Research Group (NYPIRG) conducted a study in 2014 to determine premium-setting practices.

The target population was reflected in the form of a 30-year-old single female living in a middle-class residential area. Her income was between $30,000 and $40,000 annually.

Her vehicle was a 2008 Honda Civic, which she drove about 7,500 miles per year with no history of accidents or citations.

The independent variables were education and job title. For each insurance provider, two versions of this 30-year-old woman were submitted.

They found that the lower-income variation of the woman was charged a higher rate by most insurance providers — an average of 18 percent.

This is why it’s important to shop around and determine which insurance provider truly has your best interest in mind.

Auto Insurance Rates for Postal Workers

While insurance providers don’t have special discounts for postal workers, there are discounts for federal employees. If you’re a postal worker, that may also apply to you.

The Geico federal employee discount, for instance, has what is known as the Eagle Discount. This is for active or retired federal government employees grade GS-7 and above. Those who have a federal position on the non-GS pay system may qualify as well. Other Geico discounts may also apply to you.

Does your annual mileage affect your rates?

The following table shows the rate differentials for 10 different companies and two annual commute mileage averages: 10 miles and 25 miles.

As you can see, with every company, a 25-mile commute has a larger premium than a 10-mile commute. With that being said, sometimes the difference is negligible.

The largest price increase comes from State Farm at $168.03. The majority of the price increases come in at less than $100, with the lowest being from Progressive at $10.99.

Which companies offer discounts for postal workers?

Postal employees are technically not considered federal employees. However, despite the label of “postal employee,” they still have the same retirement compensation and benefits of a federal employee.

Postal employees participate in the Civil Service Retirement System, the Federal Employees Retirement System, and the Federal Employees Health Benefits Program.

What insurance company sells to federal employees? Well, all of them, technically. More importantly, do federal employees receive insurance discounts? Let’s look at the next table for the answer.

As you can see, only four of the 22 companies offer insurance discounts for federal employees. These companies are Farmers, Geico, Liberty Mutual, and MetLife. The Liberty mutual federal employee discount may apply to postal employees, but the best insurance for government employees isn’t always the best deal for postal workers.

Is Geico a government employee insurance company? That’s their name, but they no longer cater only to government employees. Do Geico employees get auto insurance discounts? Yes, but not the same ones as government employees get. Among others, the Geico employee discount at Enterprise applies to Geico employees.

An Auto Insurance Issue That Postal Carriers Should Be Aware Of

Postal workers who deliver mail in urban or suburban environments are usually supplied with official vehicles by their local postal stations.

These easily recognizable postal trucks are automatically insured and registered by the U.S. Postal Service.

Postal carriers who work in rural areas may be required to use their personal vehicles to deliver mail to their local communities. These postal workers are also known as rural carriers, and they form a vital link in the mail delivery chain.

Unlike city carriers, who can spend the majority of the day walking their route, rural carriers generally stay within their vehicle from one delivery to the next. Even to this day, nearly half of rural carriers must provide a vehicle. Does the post office do car insurance for these drivers? No, they’ll need to get their own.

Rural carriers who use their personal cars for work may need to arrange for special insurance coverage because drivers who get in car accidents while working may not be legally covered under their personal auto insurance policies.

Rural carriers driving their own cars may be held personally responsible for any injuries or damages that result from such accidents.

To protect themselves from such potential liabilities, rural postal carriers may need to look into getting special business owners policies (BOPs).

These BOPs provide enhanced liability coverage for people who need to use their personal vehicles for work. A government employees insurance company auto claims issue will be much easier to handle if you have the right coverage.

If you’re a rural carrier, to find out whether such a policy will be necessary, you should carefully study the policy provisions of any car insurance companies that you’re considering for coverage.

One of the best and easiest ways to get information like this from insurance providers is to use the services of auto insurance comparison shopping websites.

Car Insurance Discount Opportunities for Postal Employees

Shopping around is one of the best ways to find deals on almost any product or service, and car insurance coverage is no different.

There are hundreds of viable insurance companies out there, and looking at every one of their websites could take months.

The good news is that car insurance comparison shopping websites solve this problem by doing all the legwork for you.

These sites study the policy provisions of large numbers of car insurance providers and then present this information to you in an easy-to-understand format. This service undoubtedly saves insurance shoppers large amounts of time and effort and has the potential of saving them a lot of money as well.

Group Discounts

Many car insurance companies offer special deals on auto insurance for federal employees. While postal workers are not on the government payroll, they may qualify and would do well to take full advantage of these savings opportunities.

The following table shows the companies that offer group discounts.

As you can see, 11 out of the 22 companies listed offer group discounts, exactly half.

Two examples of group discounts offered are from Ameriprise and The Hartford. The Hartford gives a 20 percent discount to AARP members and Hartford employees receive a 10 percent discount.

The following video comes from The Hartford. It explains the basics of auto insurance and auto insurance benefits.

Ameriprise offers a Gold Star discount of 15 percent to Costco members and an Executive discount of 15 percent, which includes automatic renewal and free roadside assistance.

Good Driver Discounts

Postal workers who do a lot of driving and have good driving records often qualify for good driver discounts. Some insurance companies even go so far as to give safe drivers cash rebates.

The following table shows which companies offer good driver discounts.

As you can see, all but three companies — Country Financial, Liberty Mutual, and The Hanover — offer good driver discounts.

It makes sense that most companies would offer discounts for safe driving, as safe drivers are statistically less likely to file claims that could be expensive for insurance providers.

The table that follows gives a few examples of discounts that insurance providers offer good drivers.

As you can see, for many companies, the longer the duration of safe driving, the higher the discount.

Safe Vehicle Discounts

Postal employees who drive cars that include certain types of safety features often qualify for safe vehicle discounts. Items that are frequently recognized by car insurance companies include anti-lock brakes, driver awareness systems, and electronic traction designs.

This table shows the companies that offer discounts to those who drive vehicles that are deemed safer.

There are many features a vehicle can have that can potentially grant you a discount on your rates. For instance, all the companies listed offer a discount for people who own a vehicle with a passive restraint feature.

The following table shows a few examples of discounts provided.

Discounts are very case-dependent. For instance, look at Amica’s discounts for forward-collision warning systems. Depending on the type of system — for example, the warning it emits — the discount percentage can differ.

Age-Related Discounts

Postal employees who are nearing retirement age are often eligible for mature driver discounts.

The following table shows which insurance providers offer age-related discounts.

As you can see, only nine out of the 22 insurance providers offer an age-related discount. You may be asking how much the discount is. The next table will show specific discounts for a few companies.

As you can see, discount percentages vary by insurance provider.

Low-Mileage Discounts

Postal workers who don’t drive a lot of miles may qualify for low-mileage rebates or discounts.

As you can see, all but three companies offer discounts for those who don’t drive a large amount, including some postal workers. These three companies are 21st Century, Ameriprise, and Safe Auto.

The next table will go into detail on the discounts provided to low-mileage customers by eight companies.

As you can see, some companies such as Amica offer different discounts for different amounts of mileage in a given year.

Other companies such as Country Financial only give a discount for seldom-used pleasure vehicles, so this would not apply to a postal worker’s work vehicle.

Bundling

Bundling is the practice of using the same insurance provider to cover different kinds of policies. For example, a postal worker who has homeowners insurance from a particular insurance company could also have the same firm provide car insurance coverage.

People who use this method can often save money on all their insurance policies.

The following table shows which insurance providers offer a bundling discount.

Every insurance provider offers a bundling discount except for Safe Auto, and that’s because Safe Auto only provides auto insurance.

The next table will go into detail on the discounts offered by these providers.

Some providers allow you a little leeway in determining which coverages you would like to bundle.

Mandatory Coverages

These insurance policies must be carried by drivers who want to operate cars on U.S. roads.

• Property damage liability – This coverage option pays for repairs to the other party’s vehicle or other property when the insured is at fault in an accident.
• Bodily injury liability – If a given driver is injured during an accident with the insured vehicle, bodily injury liability coverage pays for any resulting medical bills. Given the very high cost of modern health care, this coverage option is vital.
• Personal injury protection (PIP) – PIP provides for the medical care of the driver and passengers of the insured vehicle in the event of a car accident. Some PIP policies are set up to provide lost wage payments as well. PIP is usually, but not always, required as part of a state’s minimum coverage requirements.

Now that we have covered what you must have, let’s delve into what you may like to have.

Optional Coverages

These insurance policy items are optional but can provide extra protection for those who choose to carry them.

• Collision coverage – When an accident occurs between the insured vehicle and another car, collision coverage pays for the repairs to the insured vehicle. In situations where the accident is the fault of the insured driver, this coverage can help them get their car back onto the road as quickly as possible.
• Glass coverage – When a windshield or other car window is damaged while a car is in operation, glass coverage can pay for repair or replacement.
• Uninsured motorist coverage – Unfortunately, there are many uninsured drivers on the nation’s highways, and accidents with these drivers can leave law-abiding motorists with big repair bills. Uninsured motorist coverage works to protect insured drivers and their cars from these drivers. Uninsured motorist coverage is sometimes, but not always, required.
• Comprehensive coverage – Cars are often damaged by events that don’t include car accidents. These can include fires, hailstorms, vandalism, flood damage, and theft.

Postal workers perform a vital service for the nation and help to keep the wheels of commerce turning.

These people work through rain or shine, and sometimes put themselves at risk to fulfill their missions.

The least that they can expect is affordable car insurance coverage and, with the help of car insurance comparison shopping websites, they can certainly expect to get it.

Postal Worker’s Path

Up next, we’ll go into the educational requirements expected of postal workers.

Education for Postal Workers

According to the Bureau of Labor Statistics, postal workers require only a high school diploma or equivalent. Postal workers, if offered the job, are given short-term, on-the-job training.

How College Education Can Affect Rates

Rates will not be affected by prior college education or continued education. With that being said, the Federal Employee Education and Assistance Fund offers scholarships to federal employees, and (though technically not federal employees) this offer extends to postal workers as well.

Top Schools for Postal Workers

To become a postal worker, one does not need to seek post-secondary education. In fact, usually only a high school diploma is required.

Job Responsibilities for Postal Workers

Postal Service clerks perform any number of tasks in a post office, such as receiving letters and parcels, selling stamps, filling out and selling money orders, placing mail in racks or bags, and examining mail for correct postage.

Mail carriers collect and deliver the mail to homes and businesses on planned routes.

Getting Car Insurance If You’re Unemployed

An insurance provider cannot deny you coverage based solely on the fact that you are unemployed. However, there are correlated factors that do allow them to deny you coverage.

• If you’re not commuting to work, you’re driving less. This could decrease your rates.
• If your credit score has been altered by your employment change, this could increase your rates.

We’ve gone through a lot of information, and you may still have some questions. If that’s the case, fear not, up next are some frequently asked questions.

Frequently Asked Questions: Auto Insurance for Postal Employees

#1 – You said I should be honest about my career change. What if I lie?

The insurance company will consider this “soft fraud” and you can be denied services.

#2 –What does auto insurance cover?

Auto insurance will cover you, your car and others in an accident in most states.

#3 – Is auto insurance required?

Yes, in almost every state in the United States.

#4 – What happens if I do not get auto insurance?

If you are uninsured at the time of an accident, you face the very likely repercussion of a lawsuit.

#5 – What is the cheapest policy type?

The cheapest policy type is auto liability, though the insurance provider will recommend that you purchase more.

#6 – What if I forget to pay my premium?

For your first offense, you will get a mailed warning notice. For your second offense, you will receive a late charge or have your policy canceled.

The Final Word on Auto Insurance For Postal Workers

Despite not technically being labeled a federal employee, there is still a good chance your chosen insurance provider could provide you with a discount. Tell them your situation and persevere in garnering the best price for you.

Compare car insurance quotes today and find out what postal worker discounts are available to you by using our free rate tool below.