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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
Wide variety of discounts
Online claim reporting
Fewer complaints than average
Limited coverage area
Lacking some common endorsements
- 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.
- 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/
- 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.
- 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.
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. Today it sells a variety of insurance products to consumers in 11 states.
Alfa is best known for auto insurance. It offers 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.
Alfa Insurance Group has been in business for more than 75 years and today offers both car and life insurance. It ranks among the larger insurance providers on the market for auto insurance. Moreover, 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 of 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 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, the amount of which you can choose when you purchase coverage.
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 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 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. 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 different 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.
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.
Alfa sells an optional roadside assistance package that provides 24/7 emergency services, including towing, flat tire changes, fuel delivery, battery jumps, and more.
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.
Alfa Insurance offers discounts to many drivers based on occupation, including:
- Military and first responders
- State and federal employees
- Auto manufacturer employees
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.
- 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.
Alfa customers can pay their auto insurance premium with a method of their choosing. Alfa’s payment options are:
- Electronic funds transfer (EFT)
- Phone (credit or debit card)
|Online: MyAlfa customer portal||Pay online by signing in to your MyAlfa account|
|Alfa2Go mobile app||Download the Alfa2Go app at 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 24/7: 1-800-964-2532|
|Return your paper bill with a check or money order to: Alfa Insurance Companies PO Box 11000 Montgomery, AL 36191-0001|
Alfa Insurance’s loss ratio for 2017 through 2019 is 61.17%. 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.
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.
You can contact Alfa via phone, email, or live chat during business hours, which are Monday through Friday from 6 a.m. to 10 p.m. CDT and Saturday from 7 a.m. to 9 p.m. CDT. You can also visit Alfa’s website to find a local agent in your area.
|Online claim reporting||Link|
|Customer service and 24-hour bill payment||1-800-964-2532|
|Mailing address||Alfa Insurance P.O. Box 11000 Montgomery, AL 36191-0001|
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, some 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.
Alfa Insurance’s third-party satisfaction ratings are not the best. However, J.D. Power’s 2022 U.S. Auto Insurance Study gave Alfa a score of 862/1,000 for providers in the Southeast region, which is above the region average of 849. The company was not rated in any other region.
In addition, Alfa has a solid 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.
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 about premiums, agent interactions, claim handling, claim payout satisfaction, and more.
For 2022, in the private passenger auto insurance category, Alfa Insurance had a total of 3 complaints and a score of 0.29. That means it had fewer complaints than the industry average of 1.0.
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.
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.
Frequently Asked Questions
Is Alfa Insurance a Trustworthy Company?
Alfa ranked above average in J.D. Power's 2022 U.S. Auto Insurance Study. Also, AM Best affirmed Alfa's A (Excellent) rating for financial strength. So, yes, Alfa is a trustworthy company.
Is Alfa Insurance Expensive?
As far as its auto insurance policies go, the cost of Alfa insurance is considered average when compared to competitors, not expensive. In addition, the variety of discounts available may help defray premium costs.
Does Alfa Auto Insurance Have a Grace Period?
Yes. Alfa's auto insurance (as well as its homeowners and other property insurance policies) has a 60-day grace period.
How Long Has Alfa Insurance Been in Business?
Alfa has been in business since 1946. Originally, it provided fire insurance to members of the Alabama Farmers Federation. It has grown since then to offer an array of insurance policies.
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.
NAIC. "NAIC Market Share Reports."
J.D. Power. "Usage-Based Auto Insurance Takes Center Stage as Satisfaction Flatlines, J.D. Power Finds."
AM Best. "AM Best Removes from Under Review, Downgrades Credit Ratings of Arizona Automobile Ins Co; Affirms Ratings of Alfa Mutual Ins Co."