You might be surprised to learn that there are several types of auto insurance for postal employees. Many of the nation’s largest insurers offer specialty coverage that will protect you when making deliveries for the United States Postal Service (USPS).
If you’d like to learn more about your options, this guide to auto insurance for postal employees offers some tips for finding an excellent commercial policy. Our experts have reviewed the nation’s best car insurance providers so that you can find affordable rates for federal employees.
Auto Insurance for Postal Employees: What You Need to Know
Any driver that uses their vehicle for work will want to consider special insurance, including U.S. Postal Service (USPS) carriers, food delivery drivers and rideshare employees.
A traditional auto insurance policy is intended to protect you when using your vehicle for personal tasks. As soon as you begin using your car to make money, your personal coverage is no longer sufficient to protect you. In specific states or areas of your state, you may need rural carrier car insurance, which we discuss in further detail below.
However, if you operate a USPS-owned vehicle, you will be covered by a USPS insurance policy. The postal company policy will provide bodily injury coverage, comprehensive coverage and other protections, just like most additional insurance plans do.
Does the USPS Have an Auto Insurance Policy?
Since the USPS is a federal government entity, it is not required to adhere to traditional auto insurance laws that state legislators institute. This means that the USPS does not have to partner with a private insurance carrier. In fact, the USPS is self-insured.
A self-insured company will pay out of pocket for any damages that occur in a traffic crash, assuming that its employee was at fault. If the other driver as considered at fault, that person’s insurance company would pay the USPS.
Even though the USPS is self-insured, it will still not offer protections to employees using their personal vehicles to deliver mail. USPS coverage only protects agency-owned postal trucks. Doing otherwise would be extraordinarily costly and involve far too many variables. That is why drivers are required to get specialty coverage if they use their own cars to work.
What is Rural Carrier Car Insurance?
Most of the USPS carriers who drive their own vehicles work in rural areas. That is why commercial insurance coverage for USPS employees is frequently referred to as rural carrier car insurance. This type of coverage is essentially identical to commercial insurance coverage. However, your premium payments may be lower because you work exclusively in a rural area.
Rates and Discounts on Auto Insurance for Postal Employees
The cost of your auto insurance will be influenced by various factors, including which state you live in. According to the National Association of Insurance Commissioners, the following locations have the highest auto insurance rates:
- Louisiana
- Michigan
- District of Columbia
- Florida
- New York
- New Jersey
- Rhode Island
- Delaware
- Nevada
- Connecticut
Louisiana residents have the highest annual auto insurance expenditures, coming in at $1,545.82 in 2018. The most affordable state in the nation is North Dakota, with an average auto insurance cost of only $686.08.
As noted above, where you live is not the only thing that insurance companies look at when giving you a quote. Insurers will also generally consider factors like your age, marital status, gender, years of driving experience, annual miles driven and credit score.
Typically, young male drivers experience the highest insurance rates because insurance agencies consider this specific demographic to be high risk. Conversely, as middle-aged female drivers are considered lower risk, they can obtain more affordable coverage as long as they have a clean driving record.
Insurance companies are all about risk assessment. If an insurer believes that you pose a high risk for filing a claim, your premium will be more expensive.
Government Employee Auto Insurance Discounts
Fortunately, many providers offer discounted auto insurance for postal employees and other government workers. The companies that offer discounts include:
- GEICO
- Liberty Mutual
- MetLife
- Farmers
In addition to government employee discounts, the above-listed insurance companies offer further opportunities to save money. Some other common discounts include a good driver discount, a multi-car discount, a multi-driver discount and a good student discount, just to name a few.
There are other ways you can reduce the cost of your auto insurance. For instance, insurance companies will review your driving record and take into account what safety features your vehicle is equipped with, both of which can lower your rates. You can further enhance savings by bundling your auto insurance with other coverages, including homeowners insurance, renters insurance or life insurance.
Our Recommendations for Auto Insurance
Now that we have addressed the importance of auto insurance for postal employees, it is time to connect you with a great company. If you would like to obtain free quotes on auto insurance, consider using our simple rate comparison tool below. Whether you need full coverage insurance or a less comprehensive plan, it is important to compare multiple car 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 some excellent government employee discounts. Our experts named GEICO the Best Overall insurance provider in the nation. GEICO offers flexible coverage choices and lots of other deals, too.
State Farm: 8.9 out of 10.0
State Farm did not finish as high in our rankings as GEICO, but it is still a fantastic company. We awarded State Farm with the designation of Best Provider for Students. If you have a student in high school or college, State Farm might be the perfect choice for you. The company has plenty of other coverage options as well, including insurance for rural carrier car 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 eligible for government employee discounts from companies like GEICO. In fact, GEICO´s name itself is an acronym, which actually stands for “Government Employee Insurance Company.” A few other providers also offer government employee discount programs.
Your job can cause you to have to pay more for auto insurance. Despite the above-mentioned discounts, commercial policies cost more than a personal plan because your increased time on the road raises your chances of being involved in a crash.
What happens if a postal employee files a claim without commercial auto insurance?
It depends on the situation. If a postal employee is involved in an accident that occurred while off-duty, their provider will likely cover the incident. Unfortunately, accidents that occur while making deliveries will not be covered without commercial auto insurance. The reason for this is because a standard insurance policy is designed to protect personal use activities, not commercial applications.
What are rural postal carrier auto insurance requirements?
Rural postal carriers have similar auto insurance requirements to any other driver that uses their vehicle for commercial 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 cheaper rates due to their location. Since rural areas have fewer vehicles on the road, the chances of being involved in an accident are far less than in urban areas.
Does USPS have auto insurance?
The USPS is a federal entity and is exempt from the vehicle insurance laws of every state. As such, the United States Postal Service is self-insured and does not carry private insurance on any of its vehicles. The USPS self-insured status only applies to its cars and does not extend to employees who use their vehicles to deliver mail.
Methodology
The Detroit Bureau collects data from every major car insurance provider to formulate rankings of the best insurers. Our in-depth rating system considers market share, coverage, pricing, customer satisfaction, and ratings from industry experts. Each insurer is given 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 perform your own research and compare quotes to find the best coverage.
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Auto Insurance for Postal Employees: What You Need to Know - Paul Eisenstein
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