Alfa Insurance Group was founded in 1946 and is headquartered in Montgomery, Alabama. Founded to provide fire insurance to farmers in the Southeast region, the company now sells a variety of insurance products to consumers in 11 states.
Alfa is best known for its auto insurance, which includes standard coverage as well as several endorsements for added protection. Drivers can also benefit from generous discounts to lower their car insurance premiums. Alfa is a good choice for car insurance, according to our review, but the coverage area is extremely limited.
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Company’s Overview : Website
Alfa Insurance Group has been in business for over 75 years and now provides auto and life insurance. It is one of the larger auto insurance providers on the market; the Alfa Life Insurance division alone serves over 700,000 active policies and has over $27 billion in force.
Alfa provides both minimum and full coverage car insurance policies, as well as a variety of endorsements. The firm does not provide non-standard coverage or SR-22 insurance. While Alfa’s overall insurance coverage area spans 11 states, auto insurance is only available in Alabama, Georgia, and Mississippi.
Types of Coverage
Alfa lets drivers buy all of the basic coverages as well as a number of extra policies. Some types of coverage may only be available in certain states.
Bodily Injury Liability
Most states have laws that require you to have bodily injury liability coverage, which is part of a minimum coverage policy. This policy will help pay for the other driver’s medical bills and your legal defense if you get sued if you cause an accident. Alfa will pay you $50 per day for lost wages if you have to go to court. Body injury liability insurance covers you up to the limit of your policy.
Property Damage Liability
Property damage liability coverage is also included in minimum coverage insurance. If you cause an accident, your property damage liability insurance will pay for the other driver’s car repairs and any personal property damage. This kind of insurance gives coverage up to the policy limit.
Collision
Collision insurance is an optional policy that helps pay for repairs to your car if you cause an accident. Most car insurance policies cover your car based on its actual cash value, which takes into account how much it has lost in value. Alfa’s plan also pays up to $200 if you lose clothes or luggage because of a claim that is covered. When you buy collision insurance, you get to choose the amount of the deductible.
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, but it is required in some states. This policy starts in if you get hit by a driver who isn’t insured or doesn’t have enough insurance to cover all of your losses. It covers bodily injury and property damage up to the policy’s limit. Alfa’s uninsured/underinsured motorist coverage only requires a deductible for claims about damage to the car.
Medical Payments
Medical payments coverage will help pay for your medical bills or the medical bills of your passengers after an accident, no matter who was at fault. Alfa’s policy also covers funeral costs of up to $2500. There is no deductible on medical payments insurance, and it can be bought with a full coverage policy.
Loss of Income
Loss of income insurance is an optional policy that pays out if you get damaged in an accident that is covered and can’t work because of your injuries. This policy will replace 85% of your monthly income, up to $750 per month, for up to a year after the accident. This policy only covers you if you are permanently disabled. It can also cover your spouse, a family member, or anyone else who was hurt in the insured vehicle at the time of the crash.
Accidental Death and Dismemberment
You can choose to have accidental death and dismemberment coverage. It will pay you money if you pass away in an accident or get seriously hurt, even if your body parts are cut off, you lose the use of your arms and legs, you can’t talk or hear, or you go blind. The amount of money paid depends on how bad the accident-related injuries have been.
Loss of Use
Loss of use insurance is an optional policy that can be useful if your vehicle needs to be repaired following a covered loss. It can help pay for a rental car in increments of $30, $40, $50, and $100 per day.
Accident Waiver
In Alabama and Mississippi, drivers can purchase an accident waiver, also known as accident forgiveness, which prevents premium increases after the first accident for which they are at fault.
Roadside Assistance
Alfa offers an optional roadside assistance package that provides emergency services 24 hours a day, seven days a week, including towing, flat tire changes, fuel delivery, and more.
Discounts
Alfa Insurance stands out because it offers so many discounts. There are many ways for drivers to save money on their car insurance, such as getting a discount based on their job. When you apply for a policy, Alfa will check your credit, and if you have a low credit score, your premium could be higher. But discounts from the company may help you get a cheaper premium.
Driver Education Discounts
- Defensive driver: Drivers who complete a defensive driving course or an approved motor vehicle accident prevention course can receive a lower premium. In Alabama and Mississippi, applicants must be 55 years or older and have a three-year clean driving record.
- Youth defensive driver: Unmarried drivers between the ages of 16 and 20 who pass the Youth Defensive Driver Test in Mississippi or Alabama or the Youth Safety Test in Georgia can get a lower rate.
- Youth honor student: Full-time students with a GPA of at least 3.0 are eligible for the youth honor discount.
- Young driver training: Drivers between the ages of 16 and 20 who complete an approved driver education course are eligible for a lower premium. Note that drivers cannot receive both this discount and the discount for young, defensive drivers.
Occupation Discounts
Alfa Insurance provides discounts for a variety of occupations, including:
- Educators
- Farmers
- Military and first responders
- State and federal employees
- Auto manufacturer employees
- Ministers
Keep in mind that state-specific requirements must be met to qualify for an occupation-based discount.
Vehicle Safety Discounts
- Airbags: You can receive a 25% discount on your medical payment coverage premium if your vehicle is equipped with airbags.
- Anti-theft device: Cars installed with an anti-theft system are eligible for a 10% discount on their comprehensive insurance.
Policy Discounts
- Life insurance: If you have life insurance through Alfa, you can receive a discount on your auto policy. The discount depends on how much life insurance you have.
- Umbrella: Auto insurance discounts are available to drivers who have a qualifying personal, commercial, or farm umbrella insurance policy.
- Homeowner: Alfa offers homeowners a discount, provided they can provide proof of ownership.
- Multi-policy: If you insure two or more vehicles under the same Alfa policy, you may be eligible for a reduced premium.
Pros & Cons
Pros
- There are many discounts.
- Online reporting of claims
- There were fewer complaints than usual.
Cons
- Only cover a small area.
- Not having some common endorsements
Pros Clarified
- 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 Clarified
- Limited coverage area: Only in Alabama, Georgia, and Mississippi does Alfa sell car insurance.
- Lacking some common endorsements: Alfa sells a number of car insurance add-ons, but some common ones, like gap insurance and new car replacement, are not among them.
Customer Satisfaction
Regarding customer satisfaction, reviews of Alfa are mixed. A number of clients have lauded Alfa’s inexpensive premiums, straightforward claims processing, and accommodating agents. In contrast, many policyholders have complained about denied claims, sudden policy cancellations, and slow claim payouts.
Even though Alfa has some negative reviews, it’s important to note that customers work primarily with their personal agent to file claims, modify coverage, etc. As a result, a customer’s experience may be contingent on their agent rather than the company as a whole.
Satisfaction Ratings
The ratings of third-party satisfaction for Alfa Insurance are not the highest. In the Southeast, according to the 2022 U.S. Auto Insurance Study by J.D. Power, Alfa was rated above average for overall customer satisfaction. Alfa received a score of 862/1,000 from J.D. Power, which is higher than the region’s average score of 849/1,000. In no other region was the company rated.
Nonetheless, Alfa has a solid financial strength rating. AM Best assigns Alfa Insurance Group its Excellent A rating. This signifies that the company has sufficient funds to reimburse policyholders in the event of a claim and that it is unlikely to face financial obstacles that could lead to insolvency.
Complaint Index
The National Association of Insurance Commissioners (NAIC) maintains a database that assigns licensed insurance companies a grade based on the number of complaints received. The NAIC Complaint Index collects feedback from actual customers regarding premiums, agent interactions, claim handling, and satisfaction with claim payouts, among other topics.
With a score of 0.00, Alfa Insurance has fewer complaints than the industry average for private passenger auto insurance. In comparison, the average complaint score in the industry is 1.0.
Customer Service
During business hours, Monday through Saturday from 6 a.m. to 10 p.m. CST, you can contact to Alfa by phone, email, direct mail, or live chat. You can also go to Alfa’s website to look for a local agent near you.
Here is how to get in touch with the different Alfa Insurance departments:
The website has live chat and a way to report claims online.
Customer service and paying bills 24 hours a day: 1-800-964-2532
Alfa Insurance’s mailing address is: P.O. Box 11000, Montgomery, AL 36191-0001
Is Alfa Insurance A Worth Insurance to Get?
Alfa insurance is a good choice for people who live in one of the states it covers. Alfa’s low premiums and long list of discounts, including discounts for certain types of jobs, make it likely that drivers and homeowners will find a low-rate policy with the right coverage. Even though Finxpd hasn’t found out the exact rates, Alfa says that their premiums are low, and other reviews back this up. Alfa is a good choice for those who want a simple protection plan with good customer service.
However, consider the fact that auto insurance rates are customized. Your premium can be affected by variables such as your state and zip code, age, credit score, claim history, driving record, coverage limit, and deductibles.
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Source: Investopedia, Thezebra