Postal Service Vehicles and State-Required Insurance Coverage

GAO responded to a request concerning whether Postal Service vehicles are exempt from carrying state no-fault insurance coverage. GAO noted that, although it has no authority to decide such issues, a court would most likely rule that the Postal Service does not have to obtain insurance for its vehicles, because a state cannot impose regulations on a federal agency that would infringe on the agency's operations and interfere with congressional objectives. GAO further noted that, except in certain limited circumstances, appropriated funds are not available for the purchase of insurance.