What is car insurance for teachers?

Car insurance companies love giving out discounts or offering group rates in order to attract and retain customers – especially those who are considered a low risk to insure, such as teachers.

A handful of insurers offer policies expressly designed for teachers and those in the education field. Other carriers offer teacher-centric discounts on their standard policies.

Depending on the company, your specific coverage needs and other personal factors, the savings for some teachers could be significant.

“The percentage and availability varies by state, but typically it is about 15% to 30%,” says Loretta Worters, vice president for media relations at the Insurance Information Institute (Triple-I), an industry research and education organization.

Key highlights

• A few small insurers, including Horace Mann and Meemic, cater exclusively to members of the teaching and education professions.
• Larger insurers like Progressive and Geico don’t sell educator-specific policies, but they do offer discounts to teachers.
• Insurers might also offer benefits to teachers, including suspending deductibles for vandalism incidents that occur on school property.

Which companies offer car insurance for teachers?

There are a few small or regional insurers that offer coverage marketed specifically to teachers, but larger carriers are more likely to offer discounts instead. Such price breaks might be offered in only one or a handful of states.

Smaller companies that offer teacher price breaks include:

• Horace Mann offers not only insurance but also retirement and investing services to teachers and educators
• Meemic caters exclusively to educators in Georgia, Illinois, Wisconsin and Michigan
• Plymouth Rock, which provides insurance for teachers in New Jersey
• California Casualty, which serves educators, first responders and other public employees
• Educators Insurance, the preferred provider of the Massachusetts Teachers Association

A handful of large carriers also offer discounts aimed at educators and teacher associations, including:

• Geico, which offers price breaks to members of the California Association for the Education of Young Children
• Country Financial
• Liberty Mutual

“Some companies [such as Liberty Mutual] offer no deductible for vandalism or collision if it occurs on school property or during a school-sponsored event,” Worters says. “Some companies [such as Meemic] offer discounts for retired educators as well.”

If you are an educator, Worters recommends letting your insurer know and asking if discounts are available.

What auto insurance discounts are available?

The discounts that car insurers offer vary from company to company. The list of discounts is long, but here are some of the most common price breaks they offer, along with the amount you can expect to save:

Being a teacher. Drivers working in specific professions, including teachers and first responders, can earn a discount of up to 12% or more.

Safe driver. Drivers who have had no accidents or tickets over the previous three to five years can expect to save up to 30%.

Bundling. By purchasing more than one type of insurance with a company, such as having both car insurance and homeowners insurance with one provider, you can save up to 14%.

Defensive-driving courses. Seniors and teens in particular can save 5% by enrolling in an approved defensive driving course.

Affiliation or affinity. Those who work for specific companies or belong to clubs, professional organizations and alumni groups can save up to 25%.

Customer loyalty. Policyholders that remain with an insurer for more than a year can earn a loyalty discount that might increase with each year. Discounts can top 10%.

Multi-car. Insuring more than one vehicle on a policy can save you between 10% and 25%.

What types of coverage do teachers need?

A typical car insurance policy contains many different types of coverages, some of which are optional. Here are the most common types of coverage:

Liability coverage. Virtually every state requires drivers to have this type of coverage. Bodily injury liability covers damages that you or family members listed on your policy cause to someone else. Property damage liability covers damages you cause to someone else’s property.

Collision coverage. Covers damages when you collide with another car or object, or if you flip over your vehicle.

Comprehensive coverage. Covers most damages that do not involve collisions, such as falling tree branches, fires and vandalism.

Uninsured and underinsured motorist coverage. Uninsured motorist insurance protects you if you are hit by an uninsured or hit-and-run driver. Underinsured motorist insurance protects you when someone hits your car but has inadequate coverage given the extent of your losses.

Medical payments coverage and personal injury protection coverage. Covers the treatment of injuries to you and passengers in the wake of a wreck. Things such as lost wages and funeral costs also might fall under this coverage.

Gap insurance. Covers the "gap" between your car loan balance and the actual value of your vehicle if it is totaled in an accident. This insurance is especially relevant to those who have just purchased a new car.

Roadside assistance. Reimburses you for costs such as towing, jump-starts and delivery of gas.

Frequently asked questions

How much car insurance do teachers need?

The right car insurance policy is one that protects the value of your vehicle and that shields you from the possibility of having to pay out many thousands of dollars in damages if you are responsible for an accident.

If you are unsure of how much insurance you need, consult with an insurance agent to discuss which type of coverage might be right for you.

What special coverage needs do teachers have?

Nearly every state requires motorists – regardless of profession – to obtain a minimal amount of liability insurance in order to drive legally. This protects you financially if you’re found at fault in an accident for injuries or property damage to others. You’ll need comprehensive and collision insurance if you want coverage for your own vehicle; these are often packaged with liability as full-coverage auto insurance.

Be aware that a personal auto insurance policy often does not cover you when you drive a car for business purposes. If you plan to drive students on class-related activities, make sure you first consult with your insurer to make sure the activity is covered.

What factors affect car insurance rates for teachers?

In general, teachers and other educators are viewed as less risky to insure than people in some other professions.

“People who are statistically less likely to file a claim pay less for car insurance,” Worters says. “Teachers are part of that group.”

Other professionals that insurers consider low-risk include doctors and dentists, librarians and first responders, Worters says.

“There has been a correlation found with certain education levels and occupations,” she says. “It’s like the good-student discounts: Students with good grades are less likely to be involved in an accident.”