Alfa insurance review 2023

Alfa car insurance

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. Alfa offers standard auto coverage types, including uninsured motorist coverage and underinsured motorist coverage. In terms of endorsements, Alfa only offers accidental death and dismemberment, accident forgiveness (in Alabama and Mississippi) and roadside assistance, so it may not be the best carrier for drivers looking for policy customization.

Alfa car insurance received a Bankrate Score of 3.9 out of 5.0. This score reflects how the company performed across the following categories: coverage options, customer satisfaction, financial strength, average premiums, availability and digital tools.

Pros and cons of Alfa car insurance

When comparing car insurance providers to find the best company for you, it may be helpful to weigh the pros and cons of each company. Here are some of the biggest pros and cons we identified while analyzing Alfa’s auto insurance offerings:

Alfa car insurance cost

The average full coverage auto policy with Alfa costs $1,653 per year, based on rates provided by Quadrant Information Services. The average minimum coverage policy with the carrier costs $390 per year. Comparatively, the national average cost of car insurance is $2,014 per year for full coverage and $622 per year for minimum coverage.

Although Alfa may not have the cheapest average rates, remember that drivers may pay different rates for car insurance based on their individual characteristics. Factors like ZIP code, vehicle type and claims history may all contribute to a driver’s car insurance premium.

Alfa car insurance rates by driving history

A history of at-fault accidents or traffic violations will likely impact your premium. To illustrate how car insurance rates may change based on driving record, we analyzed Quadrant data to compare quotes from Alfa for drivers with a clean driving history, one speeding ticket and one at-fault accident.

In our data collection, we did not include rates for a driver with a DUI on their record, as some insurance companies may not insure a driver who has gotten a DUI. If you have been convicted of a DUI, you could contact an Alfa agent to see if you qualify for coverage.

Alfa car insurance quotes by age

Car insurance rates may vary based on age. In most cases, young drivers pay the highest rates for car insurance due to their lack of experience on the road. If you are a parent and add a teen driver to your policy, your rates will likely increase. In the table below, you can see Alfa’s average rates for drivers in various age groups. These quotes are for a driver with a clean driving history.

Average cost of car insurance for drivers on their parent’s policy

Average cost of car insurance for drivers on their own policy

Alfa car insurance discounts

Alfa offers a wide selection of car insurance discounts which may help you get a lower premium. However, the discounts Alfa offers may vary by state. Here are some of the unique savings opportunities Alfa advertises:

Alfa car tools and benefits

Alfa’s website hosts a suite of articles covering important auto insurance topics such as filing a claim and finding repair services after an accident. Potential customers can use the company's website to get a quote or locate an insurance agent in their area. However, Alfa doesn’t offer a car insurance coverage calculator or a quote comparison tool, which some other companies have.

Alfa home insurance

Alfa home insurance may be a good option for homeowners looking for standard coverage types and a selection of endorsements. As Alfa's coverage is focused on the Southeast, the company’s familiarity with regional weather threats may be beneficial. For instance, Alfa offers a discount for qualifying residents of Alabama and Mississippi if their homes are fortified against hurricanes and windstorms.

In addition to standard dwelling and personal property structure, Alfa offers the following optional coverage types: homesharing coverage, personal property replacement cost coverage, home systems protection and scheduled personal property coverage. The company also offers insurance for condominiums, renters, churches and farms. Alfa has a homeowners insurance Bankrate Score of 3.1. The company gained points for endorsement options and a low National Association of Insurance Commissioners (NAIC) Complaint Index, but lost points for limited coverage availability and third-party customer satisfaction data.

Pros and cons of Alfa homeowners insurance

Below, you can see some of the most notable advantages and drawbacks of Alfa’s home insurance offerings:

Alfa home insurance cost

The average Alfa home insurance policy costs $1,409 per year for $250K in dwelling coverage, according to Bankrate’s research. Compared to the average cost of homeowners insurance in the U.S., which is $1,428 per year for $250K in dwelling coverage, Alfa customers typically pay about the same.

However, the price of your homeowners insurance may depend on several factors, including the coverage types you choose, the age of your home and your credit-based insurance score. The average rates below may be helpful for the comparison, although your individual rates will likely vary.

Alfa home insurance discounts

Alfa offers a few home insurance discounts that could help you get a lower premium. However, some discounts are only available in select states. Here are the home insurance discounts advertised by Alfa Insurance:

Alfa home tools and benefits

Alfa's Tools & Tips section of its website features a variety of blog posts on topics like termite prevention, winterizing your in-ground pool and lightning safety. Additionally, Alabama residents who become members of the affiliated Alabama Farmers Federation may be eligible for discounts on vehicles, travel, maintenance and more.

Alfa life insurance

Based on our review, Alfa offers both term and permanent life insurance policies. The company has a variety of policy options within these categories including no-medical-exam policies, an interest sensitive plan and a final expenses burial insurance plan.

Alfa offers some unique life insurance policies that may not be common with other carriers. These include a return of premium term life policy, which may allow you to recoup a portion of your premiums if you outlive the term. You can also purchase Alfa life insurance for children up to 14 years old through the company’s First Step Life program.

Pros and cons of Alfa life insurance

Below, you can see some of the pros and cons we identified with Alfa life insurance:

Alfa life insurance endorsements

Life insurance endorsements, also called life insurance riders, are optional policies that allow you to personalize your coverage. Alfa offers a selection of endorsements, including:

Alfa life tools and benefits

Alfa doesn’t appear to offer any unique life insurance tools or benefits, like estate planning services.

Alfa customer satisfaction

Researching third-party ratings for customer satisfaction, claim satisfaction and company complaints may help you choose the best insurance company for your needs. Some of the most reputable organizations that rate insurance companies are J.D. Power and the National Association of Insurance Commissioners (NAIC).

Alfa auto satisfaction

In J.D. Power’s 2022 U.S. Auto Insurance Study, Alfa was ranked above average for overall customer satisfaction in the Southeast region. Alfa received a score of 862 out of 1,000, which is higher than the industry average score of 849 out of 1,000. Alfa was not rated in J.D. Power’s U.S. Auto Claims Satisfaction Study.

In the NAIC Complaint Index, Alfa has more complaints than expected for private passenger auto insurance based on its market share. Alfa’s complaint index is 1.36, which is slightly higher than the industry benchmark of 1.00.

Alfa homeowners satisfaction

Alfa has fewer complaints than expected for home insurance, according to the NAIC Complaint Index. Alfa’s complaint index for home insurance is 0.31, which is lower than the industry index of 1.00. Alfa is not rated in J.D. Power’s 2022 U.S. Property Claim Satisfaction Study or the 2022 U.S. Home Insurance Study.

How to file a claim with Alfa

There are several ways to file a claim with Alfa. You can start a new claim online by selecting your policy type from the dropdown menu. You’ll be asked to submit information about your policy, the incident and relevant contact information. Online claims are available for most of Alfa’s insurance policies, including auto, home and life insurance. You can also report a claim by calling the Alfa office in your state or through the Alfa2Go mobile app.

Alfa availability

Alfa only sells auto, home and life insurance policies in three states — Alabama, Georgia and Mississippi. Alfa's website advertises insurance product offerings in 11 states, but these are through an affiliate company. The eight other states listed are:

• Arkansas
• Indiana
• Kentucky
• Ohio
• South Carolina
• Tennessee
• Texas
• Virginia

Other Alfa perks worth considering

The following perks may make Alfa a competitive option:

• Mobile app: Alfa’s highly-rated mobile app allows customers to virtually view policy information, file claims, connect with an agent and pay their bill.
• Personal umbrella insurance: This coverage option may help protect you against the financial burden of a lawsuit by adding additional liability protection to back up your homeowners and auto insurance policies.
• Farm insurance: Alfa offers property, liability and optional coverage types for farmers in eligible states.
• Church insurance: This policy is designed to cover your place of worship.
• Watercraft insurance: This coverage pays out for covered losses to your recreational watercraft and is written on an actual cash-value.

Alfa corporate sustainability

The Alfa Foundation is an initiative that seeks to support organizations making a positive impact in the communities Alfa serves. Alfa supports these organizations through programs, investments and donations, including their Alfa Cares Program, which encourages staff to make a difference in their communities.

Originally founded to provide insurance to farmers in Alabama, Alfa continues to work with the Alabama Farmers Agriculture Foundation to fund education, research and awareness on the importance of agriculture in the state.

Not sure if Alfa is right for you?

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.

Alfa vs. State Farm

State Farm is one of the largest insurance companies in the U.S., and it’s the leading underwriter of auto and home insurance policies. Unlike Alfa, State Farm policies are available in almost every state. State Farm offers a large selection of insurance products and stands out for its helpful online resources and vast network of agents. Like Alfa, State Farm also offers life insurance.

Learn more: State Farm Insurance review

Alfa vs. Geico

Geico is a nationwide insurance provider, with dozens of insurance products offered through the company and its partners including auto, home, renters, life, travel, pet and health insurance. Geico has a reputation for providing affordable premiums, plus a variety of discounts for further savings. For example, Geico offers car insurance discounts for military personnel, federal employees, smart students, safe drivers and many others.

Learn more: Geico Insurance review

Alfa vs. Farmers

Farmers stands out for its unique coverage options, especially for auto insurance. Farmers offers add-on options for rideshare coverage, rental car reimbursement, customized equipment coverage and more. In addition to auto insurance, Farmers sells home, renters, life, business, earthquake, rideshare, RV and many other insurance policies. In terms of third-party ratings, Farmers doesn’t have the highest scores. In J.D. Power’s 2022 U.S. Auto Insurance Study, Farmers is rated below average in multiple regions. It’s also rated near the bottom of J.D. Power’s 2022 U.S. Home Insurance Study.

Learn more: Farmers Insurance review

Is Alfa a good insurance company?

Based on our insurance review, Alfa Insurance may be a good option if you live in one of the three states where the majority of coverage types are available. Alfa offers a good selection of coverage types, and many policies come with multiple endorsements and discounts. It’s easy to get an auto or life insurance quote online and contact a customer service agent, either through phone or live chat. However, keep in mind that Alfa doesn’t offer as many online tools as some other insurers, and its average rates are higher than the national average for many products.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.

Age: Rates were calculated by evaluating our base profile with the ages 16-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts.

The rates for drivers ages 16–20 added to their parent's policy reflect the good student and driver's training discounts applied. The rates for drivers aged 16-20 on their own policy do not include the good student and driver's training discounts. Additionally, 25-year-old rates are based on the driver as a renter and 30+ on the driver as a homeowner.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), single speeding ticket and single at-fault accident. 

Homeowners

• Coverage A, Dwelling: $150,000, $250,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000, $75,000
• Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $300,000, $300,000, $300,000, $300,000, $500,000
• 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 Scores

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto and home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.