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Federal employees aren’t limited to politicians, judges or lawyers. Civil servants and those who work in law enforcement or public health may also fall into this category.

Being a federal employee has its perks. For example, you could qualify for auto insurance discounts from Alfa, GEICO and Mercury. Besides those uniquely available to government employees, you may also be able to take advantage of other discounts offered by your insurer.

Discounts aren’t the only way to reduce your insurance costs. You can also increase your deductible, drop some coverages or switch to pay-per-mile insurance. MoneyGeek’s guide provides more information about these options.

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Key Takeaways

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A federal employee is anyone who holds a position in the various federal agencies in the government. Some may be politicians and judges, but others are civil servants, such as postal employees.

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Not all insurers offer car insurance discounts for federal employees, but GEICO, Alfa (in Alabama and Mississippi) and Mercury do.

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Insurers also offer other discount programs you can take advantage of, whether or not you’re a government employee, to reduce car insurance costs.

Companies That Offer Federal Employee Discounts

Although most insurers offer discount programs, not all have something specific for federal employees. Our research shows that government car insurance discounts are rare. In fact, only three providers offer them. Your location also plays a crucial role because not all discounts are available in all states.



You can receive Alfa’s affinity discount if you’re presently a state or federal employee. However, it’s only available in Alabama and Mississippi.

Current or retired federal employees can qualify for GEICO’s Eagle Discount. You can reduce your total auto insurance premium by up to 12% if you qualify. You can check out eligibility requirements on their website for more information.

Mercury’s occupational discount isn’t just for federal employees. You may qualify if your spouse works for the government.

If you’re leaning towards Mercury as an auto insurance provider, it’s best to contact them directly and ask for eligibility requirements.

Other Discounts to Consider as a Federal Employee

Car insurance discounts for federal employees are rare, but it doesn’t mean your options are limited to these. Car insurance companies often have several discount programs for the general population, which means you can explore these, too.

These discounts fall into different categories, such as loyalty-based, behavior-based or even telematics-based.

Other Discounts for Federal Employees
Best For

Vehicle and Safety

  • Policyholders with airbags installed in their cars or other anti-theft devices may get a discount.

Equipment Discount

  • This option is best suited to federal employees who drive a safe vehicle.


  • Bundling refers to purchasing several policies from the same insurer for different products. You can check if your current insurer also offers home insurance, which may lead to a bundling discount.
  • This is best for federal employees who may need homeowners, renters or other coverage types.

Defensive Driving

  • Most insurers offer a discount for completing a defensive driving program. However, you must ensure that you’re attending a state-approved school and that it meets your insurer’s requirements.
  • This is best for federal employees who are open to setting aside six to eight hours to take a defensive driving course.

Driver's education

  • Federal employees might get a discount if they take adult driver’s education.
  • Some states offering driver's education to those 18 and older are Nebraska, Illinois and Texas.

Safe Driving

  • You may qualify for a safe driving discount if you’ve maintained a clean driving record.
  • Best for federal employees who have avoided violations like tickets, at-fault accidents and DUIs.

Multiple Car

  • Some insurers reduce your car insurance premium if you insure multiple vehicles.
  • Best for federal employees who own more than one car.


  • You qualify for a paperless discount by having your policy documents sent electronically instead of through the mail.
  • This is best for tech-savvy federal employees who don't prefer hard copies of documents.

Pay in Full

  • Paying for your policy in full could qualify you for a discount.
  • Federal employees who are comfortable spending a higher amount up front are best suited for this discount.

Customer Loyalty Discount

  • Insurers often reduce car insurance premiums for policyholders who have been with them for several years.
  • Federal employees who are happy with their current insurers and planning to renew their policies may benefit from this discount program.

Military Discount

  • Active military members or veterans may qualify for this discount.
  • It’s best for federal employees who also serve, or have served, in the military.

Other Ways Government Employees Can Decrease Car Insurance Premiums

Discounts aren’t the only way government employees can reduce car insurance costs. Our guide covers several strategies to find more affordable premiums. These include shopping around for quotes, increasing your deductibles and removing unnecessary coverages. You can also consider usage-based insurance instead of a standard auto insurance policy.

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    Gather quotes from at least four car insurance companies.

    Even if you’re already leaning towards a specific insurer, it’s smart to see what else is available. Rates vary between providers, so shopping around for quotes can help you find the cheapest car insurance for your profile.

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    Consider paying more out of pocket.

    Full coverage car insurance policies have a deductible, which is the amount you pay out of pocket before your coverage kicks in if you file a claim. You’ll have the freedom to choose your deductible. A higher deductible typically translates to a lower premium.

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    Transfer to usage-based insurance if you don’t often drive.

    A standard car insurance policy uses statistics to calculate auto insurance rates. It may work against you if your buyer profile results in a more expensive premium (if you are a young driver or a senior, for example), but you don’t drive frequently. Switching to usage-based or pay-per-mile insurance may be more cost-effective. It’s something to consider if you drive less than 12,000 miles each year.

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    Reevaluate the coverages included in your policy.

    Knowing how much car insurance you need can help you manage your finances better. If your car insurance costs more than 10% of your car’s cash value, you may consider dropping comprehensive insurance. This will reduce your insurance costs and still cover damages resulting from collisions. Just make sure that removing it won’t leave you underinsured.

Who Is a Federal Employee?

Whether you’re working in public health, law enforcement or doing administrative work for the USPS, you’re considered a federal employee.

As the name implies, a federal employee works for the federal government. It still applies to those who work in local offices of federal agencies.


Civil service employees

As the name implies, these are people who work in organizations that provide a specific service to the nation. Civil service employees include postal workers, air traffic controllers and national park employees.


Law enforcement officers

Although law enforcement officers perform many jobs and carry different responsibilities, it all leads to the same thing: to protect lives and property.

There are several law enforcement agencies, such as the FBI and DEA. Their agents are considered federal employees, along with customs officials and those with the TSA.


Social workers

Many social services agencies are run by the state, which allows social workers to ensure their local communities receive the needed support.

People are most familiar with those who work in child services, but some are in a school setting and provide counseling in various areas. Others are probation officers who oversee people who were sentenced and are attempting to re-enter society. They often give support and practical advice.


Public health workers

Public health nurses and doctors may fall under this category, which can also include public health educators, nutritionists, epidemiologists and public health sanitarians.

Frequently Asked Questions About Auto Insurance Discounts for Federal Employees

There are several car insurance discount options for federal employees. Knowing which insurers offer these can help you make better financial decisions. Here are the most commonly asked questions regarding this subject.

About Mark Fitzpatrick

Mark Fitzpatrick headshot

Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark earned a master’s degree in Economics and International Relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.