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Alfa Insurance review 2022: Car, home and life

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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, in three states: Alabama, Georgia and Mississippi.

Perks Drawbacks
Highly-rated mobile app with policy management and claims filing tools Only available in three states
Fewer than average complaints filed with the National Association of Insurance Commissioners (NAIC) Lower than average 2021 J.D. Power score in the Southeast region
Wide range of product lines, including farm and church insurance

Bankrate’s Alfa Insurance review reveals that the carrier is unique in that it only writes policies in the Southeast, giving it a firsthand understanding of the regional considerations that impact home and auto insurance in its covered states. If you live in Alabama, Georgia or Mississippi and are looking for a provider who understands your local needs, you may want to look into Alfa.

Alfa car insurance | Bankrate Score 3.2

Alfa car insurance received a comprehensive Bankrate Score of 3.2 out of 5. This score reflects how the company performed across the following categories: mobile app, coverage options, average premium, financial strength ratings from agencies like AM Best and customer satisfaction rating from J.D. Power. Alfa received an A (Excellent) AM Best rating and received a 4.7 star App Store rating for its easy-to-use mobile app. However, Alfa lost points for its below-average J.D. Power customer satisfaction score for the Southeast in the 2021 U.S. Auto Insurance Study. Additionally, Alfa has limited state availability, further bringing down its Bankrate Score.

Alfa car insurance may be a good option for drivers in Alabama, Georgia and Mississippi who want standard coverage options, a range of discounts and a mobile app with policy management tools. If excellent customer service is a key selling point for you, you may want to weigh your options, since the company scored below-average in the 2021 J.D. Power Auto Insurance Study. However, the company did have fewer than average complaints filed with the NAIC, which may suggest that existing customers are relatively satisfied.

Alfa offers standard auto coverage types like liability insurance, uninsured motorist coverage and underinsured motorist coverage, and full coverage. It also offers accidental death and dismemberment and loss of use coverage. If you’re looking for more coverage options like gap insurance, rideshare coverage or any other specialized add-ons, Alfa may not be the right choice for you.

Alfa car insurance cost

For many drivers, Alfa may not be the cheapest car insurance company. The average full coverage policy costs $2,085 per year, based on rates from Quadrant Information Services, and the average minimum coverage policy costs $626 per year. Comparatively, the 2021 national average cost of car insurance is $1,674 per year for full coverage and $565 per year for minimum coverage.

However, remember that drivers pay different rates for car insurance, depending on their individual characteristics. Factors like state, vehicle type and claims history contribute to a driver’s personalized car insurance premium. The following table reflects average rate variations between Alfa and the national average based on driving history and adding a young driver.

Alfa average full coverage annual premium National average full coverage premium
Clean driving history $2,085 $1,674
Speeding ticket $2,253 $2,062
At-fault accident $2,430 $2,311
Adding a 16-year-old driver* $3,416 $2,531

*16-year-old rates reflect the added cost to their parents’ full coverage car insurance policy.

Alfa car insurance discounts

Alfa offers a range of car insurance discounts like multi-car and safety feature discounts. However, keep in mind the discounts may vary by state. The company also offers some standout discounts including:

  • Umbrella discount: Policyholders who also have a qualifying personal, commercial or farm umbrella policy could receive a discount on their auto insurance.
  • Life insurance policy discount: Policyholders who also hold an Alfa life insurance policy may receive a discount on their auto insurance policy.
  • Occupational discount: Alfa offers occupational discounts to qualifying educators, military and first responders, state or federal employees and auto manufacturers.

Alfa car services

Alfa’s website hosts a suite of articles covering important auto insurance topics such as how to get your car repaired after an accident. The company also offers 24/7 roadside assistance and an accident waiver program, that waives your first at-fault accident.

Alfa home insurance

Alfa home insurance may be a good option for residents of Alabama, Georgia and Mississippi who are looking for standard coverage types and a wide range of discounts. Because the company is specialized to the Southeast, the company’s familiarity with regional weather threats may be beneficial. For instance, Alfa offers premium discounts for qualifying residents of Alabama and certain Mississippi counties if their homes are fortified against hurricanes and windstorms.

In addition to standard dwelling and personal property structure, Alfa offers the following standout coverage types: replacement cost coverage for contents, specific insurance for valuables and increased residence premises liability limits. The company also offers insurance for condominiums, renters, churches and farms.

Alfa home insurance cost

The average Alfa home insurance policy costs $1,673 per year for $250,000 in dwelling coverage, according to Bankrate’s research. Compared to the 2021 average cost of homeowners insurance in the U.S., which is $1,312 per year for $250,000 in dwelling coverage, Alfa customers typically pay more.

However, the price of your homeowners insurance will depend on several factors, including the coverage limit you choose. The average rates below may be helpful for the comparison, although your individual rates will vary.

Dwelling coverage limit Alfa average annual premium National average annual premium
$150,000 $1,121 $898
$250,000 $1,673 $1,312
$350,000 $2,237 $1,723
$450,000 $2,885 $2,148

Alfa home insurance discounts

Alfa offers several home insurance discounts that may be able to lower your home insurance – including potential savings for burglar alarms and other protective devices, being claims free and having your children take out an Alfa home policy when they are of age. Through the legacy discount, your children may be able to save up to 20% on property insurance, whether they rent or own.

Note that the availability of Alfa’s home insurance discounts may vary by state.

Alfa life insurance

Alfa’s life insurance offerings are fairly standard compared to competitors. The company offers term life and permanent life insurance. The permanent life options are: whole life, interest sensitive plans, flexible universal life, guaranteed acceptance and final expense insurance. You can also purchase life insurance for children up to 14 years old without a medical exam, through the company’s First Step Life™ program.

Alfa life insurance endorsements

The company also provides a host of life insurance riders that can help personalize your policy, including:

  • Spouse level term option: This rider provides level-term coverage for a spouse up to age 65. When the rider expires, it can be converted to a permanent policy.
  • Waiver of premium: If you become fully disabled, you won’t have to pay your premiums for the duration of the disability, and your policy will remain in effect.
  • Guaranteed renewability: Regardless of your health, this rider allows you to renew your level premium term at the end of the level premium period or your return of premium policy at the policy expiration.
  • Guaranteed purchase: This rider could allow you to purchase additional coverage at specific times even if you have become uninsurable due to causes like terminal illness.

Other Alfa perks worth considering

The following offerings may make Alfa a competitive option:

  • Mobile app: Alfa’s highly-rated mobile app allows customers to view policy information, file claims and submit photos, connect with an agent and pay their bill.
  • Personal umbrella insurance: This coverage option helps to protect you against the financial burden of a lawsuit by increasing the amount of liability protection under your homeowners and auto insurance policies.
  • Church insurance: This policy is designed to cover your place of worship in terms of property and liability losses.
  • Watercraft: This coverage pays out for covered losses to your recreational watercraft and is written on an actual cash-value.

Alfa social responsibility

Alfa Cares is an initiative that seeks to support local communities through development, health and wellness, education and agriculture. Alfa has financially supported initiatives that help improve living and working conditions in local communities. It has donated money to healthcare organizations and nonprofits, and has organized school supply drives to help schools in the areas Alfa serves. The company has also supported initiatives to educate people on the importance of agriculture.

Not sure if Alfa is right for you? Consider these alternatives

Alfa may not be the right provider for you. If your needs aren’t met with Alfa insurance, you may want to consider one of the following carriers.

  • State Farm: If Alfa doesn’t write policies in your area, you may want to consider State Farm. State Farm writes policies in almost every state through a network of more than 19,000 local agents.
  • Geico: If Alfa’s policies are too pricey for your budget, you may want to consider Geico, which is known for its low average rates for home and auto insurance.
  • Farmers: If you’re looking for a company with larger state availability and a slightly higher Bankrate Score, you may want to check out Farmers, which earned a score of 3.8.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

Auto

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our sample drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

Age: Rates were calculated by evaluating our base profile with the age 16 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Hawaii rates indicate age is not a contributing factor.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), single speeding ticket and a single DUI conviction.

Homeowners

  • Coverage A, Dwelling: $150,000, $250,000, $350,000, $450,000
  • Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000
  • Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000
  • Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Bankrate Score

Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers and homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

To determine how well the best car and home insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers and homeowners, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry, as well as 40-year-old male and female homeowners with $250,000 in dwelling coverage. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers and homeowners may compare each provider.

While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.

Written by
Lizzie Nealon
Insurance Writer
Lizzie Nealon is a former insurance writer for Bankrate. Her favorite part of the job is making home, auto and life insurance digestible for readers so they can prepare for the future.
Edited by
Insurance Editor
Reviewed by
Assistant Vice President & Claims Field Manager