Alfa Car Insurance Review [2020]

Alfa car insurance operates in 11 states and specializes in coverage for farmers. Alfa currently has an A+ financial rating from AM Best.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Oct 14, 2021

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Company Details
Address: 2108 East South Boulevard
City: Montgomery
State: AL
ZIP Code: 36116-2015
Phone Number: 334-288-3900
Year Founded: 1946
AM Best Rating: A (Excellent)
Company Rating 0 (0 reviews)

Here's what you need to know...

  • Alfa Insurance Company offers multiple lines and products in addition to car insurance such as life insurance policies and health insurance
  • Only certain states provide products from Alfa Insurance Company
  • Alfa offers several types of liability coverage and other discounts on auto policies
  • Remember to ask about discounts not advertised online on the Alfa website
  • Compare Alfa’s benefits with other companies to make sure you’re getting the best deal

The insurance industry is always growing, and Alfa Insurance is a good example of this growth. Farmers created the Alfa Insurance Company, which initially started as the Alabama Farmers Federation, to provide farm insurance for those who needed it. The Federation was formed in 1921, and Alfa Insurance followed in 1946. Now, they offer even more coverage options in order to stay up to date and competitive with other insurance providers.

The Federation remains a strong force for farmers in Alabama, and Alfa Insurance has expanded to cover farmers’ needs as well as auto, life, various types of property insurance. They also offer business insurance as well as all sorts of personal lines of coverage as well.

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What is the size and scope of Alfa?

These days, Alfa isn’t just offering insurance to farmers. If you need something as simple as flood insurance, they offer it. But if you need church insurance, they offer that as well! Alfa offers financial products throughout eleven states and includes a number of affiliates. The company has an array of insurance coverages, as well as a few different venues of customer service to be able to handle claims.

With more than 2,500 employees and agents, nearly 400 service centers and more than $25 billion and one million policies, Alfa is a fairly large company.

Its properties include one life insurance company, four companies that provide products other than insurance, four general agencies, and eight property and casualty companies. The auto insurance falls into the latter category, as does fire and specialty insurance.

Its affiliates include the Alfa Farmers Federation, Alfa Alliance Insurance Corporation, and the non-standard auto insurance company of Alfa Vision Insurance Corporation.

Alfa Realty is also part of the mix, although its services are limited to Alabama residents.

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What is the scope of Alfa coverage in terms of area?

The home base of Alfa Insurance is in Montgomery, Alabama, and the company extends its products to the following ten additional states:

  • Arkansas
  • Indiana
  • Kentucky
  • Ohio
  • Tennessee
  • Mississippi
  • Georgia
  • Virginia
  • Texas
  • Missouri

Not all products are available in all states. Alfa’s core operations are located in Alabama, Georgia, and Mississippi. Hopefully in the future they’ll see even more geographic expansion, especially considering the scope of what they offer.

Is there a basic Alfa insurance policy for car coverage?

Yes, if you need simple coverage for your car, Alfa offers that as well. Liability coverage is typically a must in most states, according to the Illinois Department of Insurance. Alfa Insurance offers the two types of liability that most auto insurance companies can provide: bodily injury and property damage.

Liability helps to cover expenses incurred by other parties that resulted from an accident that was your fault. Alfa’s liability coverage extends to provide your defense if you are faced with a lawsuit.

It may also reimburse you up to $50 per day if you are required to attend a hearing or a trial at Alfa’s request and end up losing wages because of the appointment.

The Illinois Department of Insurance puts uninsured motorist coverage and underinsured motorist coverage under the basic insurance coverage, although not every state requires it.

Alfa offers both uninsured and underinsured type of insurance which covers damages or injuries to the insured when the other driver is at fault and either has no coverage or inadequate coverage to take care of the expenses.

This type of insurance comes in bodily injury and property damages types. Alfa only offers the uninsured or underinsured motorist property damage coverage to residents of Georgia and Mississippi.

Alfa car insurance also offers collision, comprehensive, and medical payments coverage. Collision coverage helps reimburse you for damage or vehicle replacement in the event of a collision.

Alfa’s collision coverage takes care of a limited amount if the driver does not own the car. It can also provide up to $200 for clothing and luggage lost in the wreck.

Alfa’s comprehensive coverage takes care of expenses related to damage to the vehicle caused by factors other than a collision. These include acts of nature, theft, arson, and similar incidents.

Once again, Alfa’s coverage is limited if the driver does not own the car, but it also extends limited coverage to rental cars. A $200 allowance for lost clothing and luggage may be included.

Medical payment coverage reimburses you for a reasonable amount of medical expenses, regardless of who was at fault for an accident. Alfa’s coverage extends to include up to $2,500 for funeral expenses.

One more benefit included in the medical coverage is the reasonable cost of a bed in a hospital so a family member may stay overnight with the injured party.

Does Alfa car insurance offer any additional options?

Car insurance companies often offer coverage that goes beyond the basics, according to the Texas Department of Insurance. Alfa car insurance is not an exception.

Additional coverage from Alfa includes emergency road service, loss of income, and loss of use and travel expense coverage.

The company’s emergency road service, which the Texas DOI calls towing and labor coverage, reimburses you for the cost of towing and mechanic assistance if your vehicle becomes disabled on the side of the road.

Services may include a battery loan, tire change, or even a gasoline delivery. Only the cost of labor is covered, however, not the cost of the battery, tire, or gas. The policy will also have predetermined limits on how much it will pay.

Alfa’s loss of income coverage pays 85% of your monthly income up to 12 months after an accident if you are left out of work because of an injury.

The coverage also applies to family members, spouses or other passengers that may have suffered loss of income in the crash. The coverage will pay up to $750 per month.

Loss of use and travel expense coverage from Alfa is part of the rental reimbursement coverage mentioned by the Texas DOI.

You can opt for coverage at four different monetary levels, ranging from $30 to $100 per day. The coverage reimburses you up to your chosen limit on a rental vehicle if yours is disabled due to a collision or factor in your comprehensive coverage. It certainly seems as though their claims process truly covers everything.

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Are there any discounts available?

Car insurance discounts can be an automatic way to save money, and Alfa offers several. Some of the most common, pointed out by the Washington State Office of the Insurance Commissioner, include good student discounts, senior discounts, and driver education course discounts.

Alfa’s website does not list all of those mentioned, but it does note discounts are offered for good students, those who took driving education courses and others.

Alfa’s discounts extend to include those for air bags, anti-theft devices or for insuring multiple cars with the company. Defensive driver courses may also get you a discount, as can insuring your house and your car with Alfa.

One more discount from Alfa is a length of service discount, which may reduce your rates for being loyal to the company.

What other Alfa insurance features exist?

Alfa’s payment options are one of the features the company highlights. You can pay your premium in one installment that covers the entire year or break it up into monthly or quarterly installments.

Alfa offers automatic billing so money is automatically taken out of your chosen account when the premium is due. This is a way to avoid the hassle of sending in a check whenever you need to make your premium payments.

Although monthly and quarterly installments may be more affordable, the company does tack on a $3 fee per payment if you don’t pay the full amount at once.

What are some pros to Alfa insurance?

Alfa wins points for some of the coverage that goes beyond the norm. Covering luggage and clothing lost in a crash, for instance, is not an option available with every insurance company.

Another plus is Alfa Vision Insurance Corporation, one of Alfa’s companies that offer non-standard auto insurance. This may be a plus for those who have trouble getting car insurance due to a poor driving record or other matters.

Being linked to an established group like Alfa with non-standard insurance may make it easier to transition to standard auto insurance when able.

Another plus for Alfa is its strong rating from AM Best. Alfa Mutual Insurance Company received an A for its financial strength and an A+ for long-term issuer credit rankings. It also received a stable financial forecast, although the company had been downgraded from previous reports. It’s important to look at what the financial strength rating of a company is before you become a customer; you want them to be able to back up the maximized amount of coverage options they have.

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Are there any cons to Alfa as a company?

On the negative side of AM Best’s assessment, Alfa Mutual Insurance Company received a negative outlook in the issuer credit category, which reflects a company’s ability to meet its established financial obligations. This may be a red flag for some.

Another strike against Alfa is its limited scope of auto insurance discounts.

While you may be able to find out about additional discounts not noted on its website, the list is lacking in discounts for seniors, military members, multiple vehicles, and others often offered by other insurance companies.

What are they ways that you could save money with Alfa?

Asking about additional policy discounts that may not be mentioned on Alfa’s website can save you money, as can paying your annual premium in one lump sum versus utilizing monthly premiums. You can also pay attention to the various factors used to determine your car insurance rates.

The type of vehicle you drive, how often you drive, and your vehicle’s use play a part in determining your premium. The lowest premiums are generally for low mileage and using your car only for pleasure rather than business reasons.

Vehicles that are costly to repair or frequently stolen typically merit higher rates than those that are less expensive to repair and not usually a target for thieves.

Shopping around to compare the wide variety of coverage options that exist out there is key to finding the best savings. Sometimes different companies can have dramatically different rates for the exact same product. Make sure the same coverage types and limits are being compared. You should also be mindful of customer reviews; a loyal customer will be able to tell you much about a company that they’ve had for many years. Not only should you care about what you’re paying, you should also care about receiving superior customer service when working with a company that protects you and your personal property.

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