Alfa Insurance was founded in 1946 and initially went into business to provide fire insurance to farmers in Alabama. Today, the company provides a variety of insurance products to more than 1 million customers, primarily in the Southern region. Alfa Insurance operates in 11 states, including Alabama, Mississippi, Georgia, Texas, Missouri, Indiana, Ohio, Virginia, Tennessee, Arkansas and Kentucky.
Overall, Alfa Insurance is a good insurance provider, but, like all insurance carriers, it has both pros and cons. We did a deep dive into Alfa’s home, auto and life insurance products to help prospective customers decide if this insurance company is right for them.
Alfa car insurance:
Alfa Insurance promises affordable car insurance coverage for common risks drivers face when they get behind the wheel. The coverage options are fairly limited, but we did find that Alfa offers tons of car insurance discounts, including savings opportunities for drivers in certain professions.
Types of coverage
Alfa Insurance sells minimum and full coverage car insurance policies. Here are the coverage options available:
- Full coverage: A full coverage policy from Alfa includes collision, comprehensive, liability, medical payments, uninsured/underinsured motorist coverage, loss of income and rental car reimbursement coverage.
- Roadside assistance: Roadside assistance from Alfa includes 24/7 coverage for services like towing, tire changes, gas, battery replacement and more.
- Accident forgiveness: Drivers in Alabama can get an accident waiver, which prevents their car insurance premium from increasing after their first at-fault accident.
Cost of Alfa car insurance
For most drivers, Alfa Insurance will not be the cheapest car insurance company. The average full coverage policy costs $2,215 per year, and the average minimum coverage policy costs $600 per year, compared to the average annual premium of $1,738 across the United States for full coverage car insurance.
However, remember that every driver pays a slightly different rate for car insurance. Factors like state, ZIP code, age, credit score and claims history contribute to a driver’s personalized car insurance premium.
|Minimum Coverage||Full Coverage|
Although Alfa Insurance’s average premium is pricey, the company offers a long list of discounts that can help drivers save money on their policy, including:
- Multi-vehicle discount
- Life insurance multi-policy discount
- Homeowner discount
- Defensive driver discount
- Young driver discount
- Driver training discount
- Youth defensive driving discount
- Occupational discounts for teachers, military, first responders, state/federal employees, ministers and farmers
- Vehicle safety features discount (airbags and anti-theft device)
Alfa home insurance
Alfa home insurance is pretty basic. The company sells HO3 and HO5 home insurance policies, but only a few add-on coverages are available. Similarly, Alfa only has a couple of discounts for home insurance. Homeowners looking for more comprehensive coverage to safeguard their property should look elsewhere for an insurance policy.
Types of coverage:
Alfa home insurance is bare-bones, with just a few coverage options available:
- Basic coverage: Alfa home insurance policies include dwelling, personal property, liability, medical payments and additional living expenses coverage.
- Personal property replacement cost coverage: Homeowners can purchase an endorsement for personal property replacement cost.
- Scheduled personal property coverage: Homeowners who keep valuables in their homes like art or jewelry can benefit from scheduled personal property coverage.
- Increased liability coverage: Alfa Insurance offers increased liability coverage limits for homeowners who want extra protection.
- Home systems protection: Alfa’s home systems protection coverage will pay to repair or replace home equipment and systems.
With Alfa Insurance, homeowners can save money with the following discounts:
- Home safety features discount (anti-theft system, fire alarms, deadbolt locks and fire extinguishers)
Alfa life insurance:
Alfa Insurance offers impressive life insurance coverage. Customers can choose from a wide variety of policy types based on their needs and budget. In addition to term life insurance and permanent life insurance, the company offers coverage for everyone from young children to seniors. Compared to Alfa Insurance’s auto and home insurance, its life insurance policies are much more robust.
Types of coverage:
Individuals shopping for life insurance will be more than satisfied with Alfa life insurance policies. Here are the types of coverage available:
- Next Chapter™ term life insurance: The Next Chapter™ term life policy offers coverage for 10, 15, 20, 25 or 30 years with coverage starting at $80,000.
- Rapid issue term life insurance: This policy does not require a medical exam and offers terms of 10, 20 or 30 years with coverage between $25,000 and $75,000.
- First Step Life™ insurance: The First Step Life™ insurance policy is designed for kids under 14 years old with coverage starting at $15,000.
- Interest sensitive life insurance: This permanent policy is available for individuals up to 75 years of age and offers cash value that earns interest according to Alfa’s declared current rates.
- Final expense insurance: Final expense insurance is available for people between the ages of 15-80 and offers minimal coverage for end-of-life and funeral expenses.
- Guaranteed acceptance life insurance: Guaranteed acceptance life insurance has no medical exam, and most applicants between ages 40-80 are approved, regardless of their health or pre-existing conditions.
- Flexible universal life insurance: With flexible universal life insurance, policyholders can adjust the death benefit over time based on their family’s needs. This policy also has a cash value component that earns interest.
- Whole life insurance: Alfa’s whole life insurance policies offer permanent coverage for individuals up to age 80, with coverage starting at $15,000.
Riders or Endorsements
Alfa life insurance policies are available with two riders:
- Spouse term level rider
- Children’s term insurance rider
Reasons why Alfa is a great option:
Alfa is a strong insurance provider overall. Its car and home insurance policies are fairly basic, but the company stands out for its life insurance policies. There are eight policies to choose from, plus two riders. Anyone shopping for life insurance will find a policy that meets their coverage needs and fits their budget.
Alfa’s home and auto insurance policies are not bad options, but drivers and homeowners looking for robust coverage might not be satisfied. However, we were impressed by the number of car insurance discounts available, including several savings opportunities aimed at young drivers.
Additional policies offered by Alfa
In addition to auto, home and life insurance, Alfa offers the following insurance policies:
- Farm insurance
- Business insurance
- Health insurance
- Dental insurance
- Watercraft insurance
- Church insurance
- Personal umbrella insurance
Alfa ratings, reviews, customer satisfaction and complaints
|J.D Power 2020 Auto Insurance Study||858/1,000 (Southwest region)|
|Better Business Bureau (BBB)||A+|
|NAIC Complaint Index||0.91 (below average complaints)|
Alfa Insurance reviews are mostly positive. The company has an A rating from AM Best, indicating excellent financial strength, and it has an A+ rating from the BBB. According to J.D. Power, Alfa Insurance was rated among the top auto insurance companies for overall customer satisfaction in the Southwest region. We were also impressed to see that Alfa has fewer than average customer complaints, as reported in the NAIC Company Complaint Index.
Frequently asked questions:
What is the best auto insurance company?
There are many great auto insurance companies on the market today, but everyone’s needs are different. Some of the best car insurance companies are State Farm, Progressive, Amica, USAA and Geico. It’s a good idea to shop around and compare rates and then speak with a licensed insurance agent before purchasing a policy.
What is the best home insurance company?
The best home insurance company is different for every homeowner. However, some strong providers worth checking out are Lemonade, Chubb, Amica and MetLife.
What is the best life insurance company?
Not all life insurance companies are created equal. Based on market share, financial strength and customer reviews, some of the best life insurance companies are MetLife, New York Life, Northwestern Mutual and State Farm.