Alfa Insurance Group Review

Excellent discounts and good coverage available in three states

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Alfa Insurance

Alfa Insurance

Investopedia’s Rating
3.1

Our Take 

Alfa is a good car insurance provider for drivers who live in one of the three states where coverage is offered. Drivers can customize their policy with several add-ons and take advantage of many discounts for a lower rate. Alfa also has decent third-party ratings in most categories. 

  • Pros & Cons
  • Key Takeaways
  • Specifications
Pros & Cons
Pros
  • Wide variety of discounts

  • Online claim reporting

  • Fewer complaints than average

Cons
  • Limited coverage area

  • Lacking some common endorsements

  • Low customer satisfaction rating

Key Takeaways
  • Alfa offers standard car insurance policies plus several endorsements.
  • The company has 11 discounts, including savings for drivers in various professions.
  • The average annual car insurance premium from Alfa is $2,119.
Specifications
  • Year Founded 1946
  • Types of Coverage Bodily injury liability, Property damage liability, Collision, Comprehensive, Uninsured/underinsured motorist, Medical payments, Loss of income, Accidental death and dismemberment, Loss of use, Accident waiver, Roadside assistance
  • Available Discounts 11
  • Purchasing Options Online, phone, local agent
  • Customer Service Phone: 1-800-964-2532; Email and online chat available by state
  • Official Website https://www.alfainsurance.com/

Pros Explained

  • Wide variety of discounts: Alfa offers 11 car insurance discounts, including special savings for certain occupations, like first responders, farmers, and teachers.
  • Online claim reporting: Alfa customers can file claims online and track their status through the policyholder portal. 
  • Fewer complaints than average: According to the NAIC Complaint Index, Alfa has fewer than the average number of complaints as reported by policyholders.

Cons Explained

  • Limited coverage area: Alfa only sells car insurance in three states: Alabama, Georgia, and Mississippi.
  • Lacking some common endorsements: Although Alfa sells several car insurance endorsements, the company doesn’t offer some common options, like gap insurance or new car replacement. 
  • Low customer satisfaction rating: J.D. Power rated Alfa below average for overall customer satisfaction in the Southeast region, which indicates potential problems with things like agent interactions, premiums, and claim handling.

Introduction

Alfa Insurance Group was established in 1946 and is based in Montgomery, Alabama. The company was originally founded to provide fire insurance to farmers in the Southeast region, and today it sells a variety of insurance products to consumers in 11 states.

Alfa is best known for auto insurance, offering standard coverage plus several endorsements for additional protection. Drivers can also take advantage of generous discounts to get a lower car insurance premium. Based on our review, Alfa is a good choice for car insurance, but the coverage area is extremely limited.

See our picks for the best car insurance providers to find the right one for you.

Company Overview

Alfa Insurance Group has been in business for more than 75 years and today offers both car and life insurance. It ranks as the 29th largest insurance provider on the market; the Alfa Life Insurance division alone serves over 700,000 active policies and has more than $27 billion in force. 

Alfa offers minimum and full coverage car insurance policies, plus several endorsements. The company doesn’t sell non-standard coverage or SR-22 insurance. While Alfa’s overall insurance coverage area spans 11 states, you can only purchase auto insurance in Alabama, Georgia, and Mississippi.

Types of Coverage

Drivers can purchase all the basic coverages through Alfa, as well as several optional policies. Some coverage types may be limited to certain states.

Bodily Injury Liability

Bodily injury liability coverage is a legal requirement in most states, and it's included with a minimum coverage policy. If you cause an accident, this policy will help pay for the other driver’s medical bills, as well as your legal defense if you get sued. If you must attend a trial, Alfa will give you $50 per day in lost wages. Bodily injury liability insurance provides coverage up to your policy’s limit.

State minimum liability coverage may not offer enough protection in the event of a crash. Consider increasing your coverage limits to avoid paying out-of-pocket costs.

Property Damage Liability

Property damage liability coverage is also included with minimum coverage insurance. After an at-fault accident, your property damage liability insurance will compensate the other driver for their vehicle repairs and related personal property damage. This type of insurance provides coverage up to the policy limit.

Collision

Collision insurance is an optional policy that helps pay for your vehicle’s repairs after an accident that you cause. Most car insurance policies provide coverage based on your car’s actual cash value, which factors in depreciation. Alfa’s plan also provides up to $200 for lost clothing or luggage due to a covered claim. Collision insurance has a deductible, which you get to choose when you purchase coverage. 

Comprehensive

Along with collision insurance, comprehensive insurance is typically included with a full coverage policy. It can help cover your vehicle’s repairs after a non-collision incident, such as damage from fire, hail, falling objects, or vandalism. Comprehensive insurance will also cover your vehicle in the event of theft, and includes compensation for lost clothing or luggage after an approved loss. Comprehensive insurance has a required deductible, which is customizable.

Uninsured/Underinsured Motorist

Uninsured/underinsured motorist coverage is usually optional, although it is required in some states. This policy applies when you get hit by a driver who is uninsured or does not have enough insurance to pay for your losses in full. It includes bodily injury coverage and property damage coverage, up to the policy’s limit. Alfa’s uninsured/underinsured motorist coverage only requires a deductible for property damage claims.

Medical Payments

Medical payments coverage will help pay for your medical bills or your passengers’ medical bills after a covered accident, regardless of which driver was responsible. Alfa’s policy also includes up to $2,500 for funeral expenses. Medical payments insurance does not have a deductible, and it can be purchased with a full coverage policy.

Loss of Income

Loss of income insurance is an optional policy that applies if you get injured in a covered accident and cannot work due to injuries. This policy will replace 85% of your monthly income, up to $750 per month, for a maximum of one year after the accident. This policy only applies if you are continuously disabled, and it can also cover your spouse, a family member, or anyone else who was injured in the insured vehicle at the time of the crash. 

Accidental Death and Dismemberment

Accidental death and dismemberment coverage is optional. It will provide compensation in the event that you are in a fatal accident or suffer severe injuries in a crash, including dismemberment, loss of use of arms and legs, loss of speech and/or hearing, or loss of sight. The amount of money paid is dependent on the severity of the injuries sustained in the accident. 

Loss of Use

Loss of use insurance is an optional policy that can come in handy if your car needs to be repaired after a covered loss. It can help pay for a rental vehicle in $30, $40, $50, and $100-per-day increments.

Accident Waiver

Drivers in Alabama and Mississippi can purchase an accident waiver, also called accident forgiveness, which can prevent your premium from increasing after your first at-fault accident.

Roadside Assistance

Alfa sells an optional roadside assistance package that provides 24/7 emergency services, including towing, flat tire changes, fuel delivery, battery jumps, and more.

Discounts

Alfa Insurance stands out for its ample discount opportunities. There are a variety of ways for drivers to save money on their car insurance policy, including occupation discounts. Keep in mind that Alfa will check your credit when you apply for a policy, and having a lower credit score could result in a higher premium. However, the company’s discounts may help you get a more affordable premium.

Driver Education Discounts

  • Defensive driver: Drivers can get a lower premium if they complete a defensive driving course or an approved motor vehicle accident prevention course. In Alabama and Mississippi, you must be over 55 to qualify and have a clean driving record for three years.
  • Youth defensive driver: Unmarried drivers 16 to 20 years old can get a lower rate if they pass the Youth Defensive Driver Test in Mississippi or Alabama, or the Youth Safety Test in Georgia.
  • Youth honor student: Full-time students who have a 3.0 GPA or higher can qualify for the youth honor discount. 
  • Young driver training: Drivers 16 to 20 years old can get a lower premium if they complete an approved driver education course. Note that drivers cannot get both this discount and the youth defensive driver discount. 

Occupation Discounts

Alfa Insurance offers discounts to many drivers based on occupation, including:

  • Educators
  • Farmers
  • Military and first responders
  • State and federal employees
  • Auto manufacturer employees
  • Ministers

Keep in mind that you must meet certain criteria to qualify for an occupation-based discount, which vary by state. 

Vehicle Safety Discounts

  • Airbags: If your car has airbags, you can receive a 25% discount on your medical payment coverage premium.
  • Anti-theft device: Cars that have an anti-theft system are eligible to receive a discount of up to 10% on comprehensive insurance.

Policy Discounts

  • Life insurance: You can receive a discount on your car insurance policy if you have life insurance through Alfa. The discount is based on the amount of life insurance you have.
  • Umbrella: Drivers who have a qualifying personal, commercial, and farm umbrella insurance policy can get discounted car insurance. 
  • Homeowner: Alfa offers a discount to homeowners, as long as you can provide proof of ownership.
  • Multi-policy: If you insure two or more vehicles on the same Alfa policy, you can qualify for a lower car insurance rate.

Payment Options

Alfa customers can pay their auto insurance premium through the method of their choosing. Alfa’s payment options are:

  • Online/Mobile
  • Electronic funds transfer (EFT)
  • Phone (credit or debit card)
  • Mail

Here is how to complete your Alfa car insurance payment:

Payment Method Details 
Online: MyAlfa customer portal Pay online by signing in to your MyAlfa account
Alfa2Go mobile app  Download the Alfa2Go app on the App Store or Google Play 
Electronic funds transfer (EFT)  Set up EFT payments by submitting the form for your state 
Phone  Pay by credit or debit card: 1-800-964-2532 (Monday – Saturday, 6 a.m. – 10 p.m. CT) 
Mail  Return your paper bill with a check or money order to:

Alfa Insurance Companies
PO Box 11000
Montgomery, AL 36191-0001 

Loss Ratio

Alfa Insurance’s loss ratio for 2017 through 2019 is 63.28%. This percentage is calculated by dividing the total number of reported claims by the company’s total earned premiums. Alfa’s loss ratio is similar to many of its competitors, and it's on the lower end of the spectrum when compared to the top 30 largest car insurance companies.

Other Features

Alfa is a fairly basic insurance company. It does not have many standout features compared to some other companies, but we like that drivers can file claims online 24/7, without calling an agent first. Also, drivers can get a quote and purchase a car insurance policy online, a service that some smaller regional providers don’t offer.

Customer Service

You can contact Alfa via phone, email, direct mail, or live chat during business hours, which are Monday through Saturday from 6 a.m. to 10 p.m. CST. You can also visit Alfa’s website to find a local agent in your area.

Below is the contact information for the various Alfa Insurance departments:

Contact Method Details 
Live chat Link
Online claim reporting  Link 
Customer service and 24-hour bill payment  1-800-964-2532 
24-hour automated customer service (for GA auto policies starting with 14-10 only)  1-877-784-7466 
24-hour claim reporting (for GA auto policies starting with 14-10 only)  1-877-584-7466 
Mailing address  Alfa Insurance
P.O. Box 11000
Montgomery, AL 36191-0001 

Customer Satisfaction 

In terms of customer satisfaction, Alfa’s reviews are a mixed bag. Some customers have praised Alfa’s affordable premiums, easy claim handling, and friendly agents. On the other hand, many policyholders have complained about denied claims, unexpected policy cancellations, and slow claim payouts.

Although Alfa has some negative reviews, it’s important to note that customers primarily work with their personal agent to file a claim, change their coverage, etc. Because of that, a customer’s experience may be dependent on their agent, rather than the company as a whole.

Satisfaction Ratings

Alfa Insurance’s third-party satisfaction ratings are not the best. In J.D. Power’s 2021 U.S. Auto Insurance Study, Alfa was rated below average for overall customer satisfaction in the Southeast region. J.D. Power gave Alfa a score of 837/1,000, which is below the region average of 847/1,000. The company was not rated in any other region.

However, Alfa does have a good financial strength rating. AM Best gives Alfa Insurance Group an A rating, which is considered Excellent. That means the company has enough money to repay policyholders when a claim is made, and it's unlikely to face financial obstacles that could lead to bankruptcy.

Complaint Index

The National Association of Insurance Commissioners (NAIC) maintains a database that scores licensed insurance companies based on the number of complaints they receive. The NAIC Complaint Index gathers feedback from real customers around premiums, agent interactions, claim handling, claim payout satisfaction, and more.

Alfa Insurance has fewer complaints than average for private passenger car insurance, with a score of 0.58. For comparison, the industry average complaint score is 1.0.

Account Management

Alfa makes it easy for policyholders to manage their policies. Through the online portal, customers can make payments, report and track claims, download policy documents, enroll in paperless statements, start a live chat session with an agent, and more. Customers can also download the free Alfa2Go mobile app, which has some interesting features, like the ability to pay your premium through a text message.

How Alfa Compares to Other Auto Insurance Companies

The average car insurance premium from Alfa is $2,119 per year, which is about average compared to the top 30 largest auto insurance companies (according to internal Investopedia research). Some carriers, like Auto-Owners ($1,785) and Erie ($1,621) have lower rates, while other providers like Nationwide ($2,329) and Farmers ($2,888) have higher average premiums.

However, remember that car insurance rates are personalized. Factors like your state and zip code, age, credit score, claim history, driving record, coverage limit, and deductibles can impact your premium. 

Final Verdict

If you’re in the market for car insurance, Alfa is a strong company to consider. Alfa offers good coverage options, great discounts, and has excellent third-party ratings for financial strength. In addition, Alfa’s average premiums are comparable to many of its competitors.

However, the biggest downside is the limited coverage area. You can only purchase car insurance from Alfa if you live in Alabama, Georgia, or Mississippi, although the company sells other types of insurance in more states.

Methodology 

Investopedia is committed to providing readers with unbiased, comprehensive reviews of auto insurance companies. All of our reviews are based on extensive research and analysis of each company’s coverage, customer service, pricing, years in business, accreditation, and more. To rate providers, we developed an auto insurance review methodology that compares the auto insurance coverage types, additional features, discounts, account management, and other features.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. NAIC. "Alfa Ins Corp National Complaint Index Report." Accessed Jan. 21, 2022.

  2. J.D. Power. "Auto Insurance Customer Satisfaction Stalls Despite $18 Billion in Premium Relief, J.D. Power Finds." Accessed Jan. 21, 2022.

  3. Alfa Insurance. "About Alfa." Accessed Jan. 21, 2022.

  4. Alfa Insurance. "Payment Options." Accessed Jan. 21, 2022.

  5. NAIC. "NAIC Market Share Reports 2017–2019." Accessed on Jan. 21, 2022.

  6. Business Wire. "AM Best Downgrades Issuer Credit Ratings of Alfa Insurance Group Members." Accessed Jan. 21, 2022.

  7. Alfa Insurance. "Mobile App." Accessed Jan. 21, 2022.