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You may be surprised to learn that there are several types of auto insurance for postal workers. Many of the country’s largest insurers offer specialized coverage that will protect you during United States Postal Service (USPS) deliveries.
If you’re interested in learning more about your options, this guide to auto insurance for postal workers has some tips for finding a great commercial policy. Our experts have reviewed the best auto insurance providers in the country so that you can find affordable rates for federal employees.
Auto insurance for postal workers: what you need to know
Any driver who uses their vehicle for work will want to consider special insurance, including United States Postal Service (USPS) carriers, food delivery drivers, and carpool employees.
A traditional auto insurance policy is meant to protect you when you use your vehicle for personal tasks. As soon as you start using your car to earn money, your personal coverage is no longer sufficient to protect you. In specific states or regions of your state, you may need rural transportation car insurance, which we discuss in more detail below.
However, if you drive a vehicle owned by USPS, you will be covered by a USPS insurance policy. The postal business’s policy will provide bodily injury coverage, full coverage, and other protections, just as most supplemental insurance plans do.
Does the USPS have an auto insurance policy?
Because the USPS is a federal government entity, it is not required to adhere to traditional auto insurance laws instituted by state legislators. This means that the USPS does not have to partner with a private insurer. In fact, the USPS is self-insured.
A self-insured company will pay out of pocket for all damages that occur in a traffic accident, assuming its employee was at fault. If the other driver was found to be at fault, that person’s insurance company would pay the USPS.
Even though the USPS is self-insured, it still won’t offer protections for employees using their personal vehicles to deliver mail. USPS coverage only protects agency-owned mail trucks. To do otherwise would be extremely costly and involve too many variables. This is why drivers are required to obtain specialized coverage if they use their own car for work.
What is Rural Carrier Auto Insurance?
Most USPS carriers who drive their own vehicles work in rural areas. This is why commercial insurance coverage for USPS employees is often referred to as rural carrier auto insurance. This type of coverage is essentially the same as commercial insurance coverage. However, your premium payments may be lower because you work exclusively in a rural area.
Auto insurance rates and discounts for postal workers
The cost of your auto insurance will be influenced by a variety of factors, including the state in which you live. According to the National Association of Insurance Commissioners, the following places have the highest auto insurance rates:
- District of Colombia
- new York
- New Jersey
- Rhode Island
Louisiana residents have the highest annual auto insurance expenses, reaching $ 1,545.82 in 2018. The most affordable state in the country is North Dakota, with an average auto insurance cost of just $ 686.08.
As noted above, where you live isn’t the only thing insurance companies look at when they give you a quote. Insurers will also generally consider factors such as your age, marital status, gender, years of driving experience, annual mileage driven, and credit score.
Typically, young male drivers experience the highest insurance rates because insurance agencies consider this specific demographic to be at high risk. Conversely, since middle-aged female drivers are considered lower risk, they can get more affordable coverage as long as they have a good driving record.
Insurance companies are all about assessing risk. If an insurer considers you to be a high risk for filing a claim, your premium will be more expensive.
Discount on auto insurance for government employees
Fortunately, many providers offer discounted auto insurance for postal workers and other public servants. Companies that offer discounts include:
- Mutual Freedom
In addition to discounts offered to government employees, the insurance companies listed above offer other money-saving opportunities. Some other common discounts include a good driver discount, a multi-car discount, a multi-driver discount, and a good student discount, to name a few.
There are other ways to reduce the cost of your auto insurance. For example, insurance companies will review your driving record and consider the safety features your vehicle is equipped with, both of which can lower your rates. You can further increase your savings by bundling your auto insurance with other coverages, including home insurance, tenant insurance, or life insurance.
Our recommendations for auto insurance
Now that we’ve covered the importance of auto insurance for postal workers, it’s time to put yourself in touch with a great company. If you want free auto insurance quotes, consider using our simple rate comparator below. Whether you need comprehensive insurance or a less comprehensive plan, it’s important to compare multiple auto insurance quotes to find the best rates.
GEICO: 9.5 out of 10.0
GEICO was originally created specifically for government employees. While GEICO now serves the general public, it still offers great discounts to government employees. Our experts have named GEICO the best comprehensive insurance provider in the country. GEICO also offers flexible coverage choices and many other offers.
State Farm: 8.9 out of 10.0
State Farm didn’t finish as high in our ranking as GEICO, but it’s still a fantastic company. We have awarded State Farm the designation of the best supplier for students. If you have a high school or college student, State Farm might be the perfect choice for you. The company also offers many other coverage options, including insurance for rural carrier auto insurance.
FAQ: Auto Insurance for Postal Employees
How Does Your Job Affect Your Auto Insurance?
Working for the post office can affect your auto insurance premiums in several ways. Government employees, including postal workers, are entitled to discounts for government employees from companies like GEICO. In fact, the name of GEICO itself is an acronym, which actually stands for “Government Employee Insurance Company”. A few other vendors also offer discount programs for government employees.
Your job may require you to pay more for your auto insurance. Despite the discounts mentioned above, commercial policies cost more than a personal plan because your increased driving time increases your chances of being involved in an accident.
What happens if a postal worker files a claim without commercial auto insurance?
It depends on the situation. If a postal worker is involved in an accident that occurred while off duty, their provider will likely cover the incident. Unfortunately, accidents that occur during deliveries will not be covered without commercial auto insurance. The reason is that a standard insurance policy is designed to protect personal use activities, not business applications.
What are the auto insurance requirements for rural postal carriers?
Rural postal carriers have auto insurance requirements similar to any other driver who uses their vehicle for business purposes. This means that if a rural postal carrier uses their own car to make deliveries, they need special coverage. However, they may benefit from lower rates due to their location. Since rural areas have fewer vehicles on the road, the chances of being involved in an accident are much less than in urban areas.
Does USPS have auto insurance?
The USPS is a federal entity and is exempt from the auto insurance laws of each state. As such, the United States Postal Service is self-insured and does not carry any private insurance on any of its vehicles. USPS self-insured status only applies to its cars and does not extend to employees who use their vehicles to deliver mail.
The Detroit Bureau collects data from all of the major auto insurance providers to formulate rankings of the best insurers. Our in-depth rating system takes into account market share, coverage, pricing, customer satisfaction, and industry expert ratings. Each insurer is assigned a weighted score in four categories and an overall score out of 10.0.
We recommend auto insurance companies based on these rankings, but we also encourage you to do your own research and compare quotes to find the best coverage.