Is Alfa Good for Auto Insurance?
Last Updated on
Alfa Insurance is an insurance company that serves over 1 million customers in 11 states. The company has a particularly strong presence in Alabama, Mississippi, and Georgia.
Alfa may be the right option for certain drivers in certain situations. The company is well-rated for its competitive pricing options, transparent business model, and variety of coverage options.
Is Alfa a good car insurance company? Today, we’re explaining everything you need to know about whether or not Alfa is good for auto insurance.
What is Alfa Insurance?
Alfa launched in 1946 primarily to provide fire insurance to farmers in Alabama. The Montgomery, Alabama-based company was originally known as the Alabama Farmers Federation.
Today, Alfa has grown to offer a range of insurance options to all types of members. The company offers life, property, and car insurance to clients. Alfa emphasizes superior customer service. It may not be the largest company, but it aims to impress members with better claims satisfaction and response times.
Alfa also aims to offer affordable pricing across all company products. They also claim to offer more discounts than most competitors. In fact, Alfa claims to have “300,000 money-saving discounts” in total.
Where Does Alfa Insurance Operate?
Alfa provides car insurance in Alabama, Mississippi, Georgia, Texas, Missouri, Indiana, Ohio, Virginia, Tennessee, Arkansas, and Kentucky.
However, Alfa’s primary coverage area is in Alabama, Mississippi, and Georgia, which is where the majority of its customers are located.
Alfa is headquartered in Montgomery, Alabama, although the company has subsidiary offices in many of its covered states.
What Makes Alfa Insurance Different?
Alfa aims to differentiate itself from the competition with superior customer service. As a smaller insurance company serving only 11 states and 1 million policyholders, Alfa doesn’t have the outreach of some of America’s largest nationwide providers. Alfa aims to solve that issue with superior customer service.
Many companies claim to offer good customer service – but fail to live up to that promise. Alfa, however, genuinely has fewer complaints logged with the NAIC than other insurers of its size. That tells us that policyholders are generally happy with the claims process and customer service they get with Alfa.
Despite emphasizing customer service, Alfa does not charge significantly higher rates than its competitors. Alfa is not typically the cheapest option in its coverage areas, although it’s not the most expensive either. You should be able to find cheaper insurance prices with GEICO, USAA, and Progressive, although Alfa frequently comes in cheaper than Nationwide and other larger providers.
Alfa Insurance Reviews and Ratings
As of 2019, Alfa has a financial strength rating of “A” or “Excellent” from A.M. Best, the organization that assesses the financial strength of insurance companies. That rating indicates that the company should have no issue covering its liabilities or policies in the future. However, many larger insurance companies have better ratings (A+ or higher).
In 2019, A.M. Best downgraded Alfa’s long-term issuer credit rating from A+ to A.
Alfa is not accredited by the Better Business Bureau.
Alfa Car Insurance Discounts and Features
Alfa car insurance discounts and features include all of the following:
Alfa2Go Mobile App: Alfa offers a unique personalized service called Alfa2Go. It’s a mobile app that lets you save auto insurance ID cards for quick access, view coverage on-the-go, see billing info, and connect with agents, among other features. Alfa launched the app in 2019.
Court Appearance Compensation: Alfa will pay you up to $50 per day to appear in court if you are ordered in court by Alfa’s request.
Clothing and Luggage Coverage: Alfa will cover clothing and luggage in your vehicle in the event of a break-in, up to a maximum of $200.
Loss of Income Coverage: Alfa will compensate you for up to 85% of the normal wages you would have earned if you are injured in an accident. This is an optional add-on.
Loss of Car Use: Alfa will reimburse you if you have lost the use of your car – say if your car is being repaired and you need to rent a vehicle.
Defensive Driver Discounts: Alfa offers a discount of up to 5% for drivers who have completed a defensive driving course.
Home and Auto Bundling: Policyholders can save up to 12% by bundling home and auto insurance together.
Car Seat Discounts: Alfa offers discounts on car seats to certain members.
Alfa Car Insurance Coverage Options
In addition to the unique car insurance options above, Alfa offers a standard range of car insurance policies and coverages, including:
Liability Coverage: Liability coverage covers medical expenses and property damage you cause to other drivers during an accent.
Collision Coverage: Collision coverage covers damage to your own vehicle from an accident.
Comprehensive Coverage: Comprehensive coverage covers non-accident damage to your vehicle, including fire damage, hail damage, storm damage, theft, vandalism, and more.
Uninsured and Underinsured Motorist Coverage: If an uninsured or underinsured motorist hits your vehicle, then this coverage could cover your car repair costs and medical bills.
Personal Injury Protection (PIP): PIP covers medical expenses after an accident up to a certain limit regardless of fault.
Medical Payments Coverage: Medical payments coverage, or MedPay, is similar to health insurance. It covers certain medical bills and related costs after an accident.
Rental Car Coverage: If your vehicle is unusable and being repaired, then Alfa will compensate you for the cost of renting a car.
Emergency Roadside Assistance: Alfa offers roadside assistance as an optional add-on to all policyholders.
Multiple Insurance Products: Alfa offers car insurance along with home, life, business, farm, church, flood, umbrella, dental, health, and watercraft insurance. Some insurance (including health insurance) is offered through affiliate providers in certain states.
Final Word: Is Alfa a Good Car Insurance Company?
Despite being a smaller insurance company, Alfa offers a full spectrum of insurance products catered to drivers across the southeastern United States. The company offers well-rated auto, home, health, business, life, dental, farm, umbrella, flood, and watercraft insurance, among other insurance products. Alfa is rarely the cheapest insurance company in its coverage area, although its pricing is competitive with other mid-range providers.
Overall, Alfa is a good insurance company for customers in the small number of states where the company is active. If you live in a covered state, then it may be worth requesting a quote from Alfa today.