Alfa was founded in 1946 by an Alabama farmer named John Tucker Harris for the purpose of offering fire insurance. Today they offer a range of services, including home, life, business, flood, auto, and even health insurance. At first look, Alfa seems rather bare bones as an insurance company. There aren't the cheapest, but they seem to have a low level of customer complaints. Their primary goal moving forward, is to improve their technology, and expand their services and product lines over time.
|States served||Alabama, Arkansas, Georgia, Indiana, Kentucky, Mississippi, Missouri, North Carolina, Ohio, Tennessee, Texas, Virginia|
|New car protection||No|
|Pay schedule||12 months, 6 months|
|Claims methods||online, phone|
Pros and Cons
- Low customer complaints
- Reliability in claims return
- Easy to report a claim with 24/7 service available
- Only available in 11 states
- Very few add-ons or options
Alfa Insurance Coverage
There aren't a load of options, and the ones they have are fairly standard. They also offer the standard coverage, which will be listed below the specialty coverage options. It is possible they have more, but it may vary state by state as to what is available and legal, meaning that it’s worth individuals contacting them to find out if other options are available.
- Roadside Assistance and Towing pays for towing and other road side assistance, even extra fuel. Covers up to $100 the cost of items (tire, battery, oil, and other items is not covered)
- Accident Waiver this is Alfa's version of forgiveness. The parameters weren't clear in any of the research but the suggest this add-on eliminates the rate increase associated with first at-fault accident.
- Loss of Use/Rental Car pays for cost of rental or alternative transportation.
Here are a few unique things Alfa offers, that are simply part of the service. $50 per day for lost wages if Alfa asks you to appear at court. $200 coverage for luggage and clothes owned by the policy holder with a full coverage policy. They also offer coverage expenses if your car is stolen, and coverage for a family member to stay in a hospital if they were injured in a covered accident. Below is a list of basic coverage that are fairly common to all agencies.
Standard Insurance Coverage
- Bodily Injury Liability
- Property Damage Liability
- Comprehensive Coverage
- Collision Coverage
- Medical Payment
Car Insurance Rates
Alfa was just shy of 3% higher than the industry median price for insurance. The average annual rate for Alfa is $1,795. GEICO's rate for the same coverage is $2,256. Alfa's lowest rate nationally is in Virginia at $125.15/month which translates to $1,508/year. The most expensive was Georgia at $225.52/month or $2,706.24/year. Rates are fickle and dependent on several factors, so it's always best to check with the insurer either through their website, or speak to one of their agents. Other factors such as age, traffic violations, and geographical location can affect these rates as well.
Car Insurance Discounts
Alfa Insurance has occupational and military related discounts but I couldn't find the discount percentage only that the discount may be available. Below is a rundown of the basic discounts available through Alfa.
- Airbags Discount allows a discount for having airbags
- Multi-Car Discount applies when more than one car is insured on the policy.
- Multi-Policy Discount for policyholders that hold more than one policy with Alfa.
- Home and Auto Bundle Discount is available for homeowners that want to bundle both types of insurance together.
- Defensive Driver Discount applies when policy holder takes an approved defensive driving course.
- Driver Training Discounts generally a discount for younger drivers but when policy hoder takes an approved driving course.
- Youth Defensive Driver Discount same as the above discount but applies to younger drivers.
- Good Student Discount applies when a high school or college student maintains a good grade point average.
- Homeowner Discount if the policyholder owns a home, they will receive a discount.
- Claims-Free Discount applies when a policyholder goes a year without filing a claim, they may receive a discount.
- Teacher Discount applies to policy holders who are teachers.
|Anti-theft device discount||Yes|
|Defensive driving discount||Yes|
|Good student discount||Yes|
|Safety device discount||Yes, up to 25%|
|Special employment discount||No|
Alfa Insurance Vs. Competitors
Alfa is stripped away automotive insurance. It's down and dirty bare bones insurance. Can you get better insurance elsewhere? Maybe. People do like their bells and whistles but there are worse agencies you could go through. We'll stack up Alfa against three of their competitors to see how they fair against bigger companies with those bells and whistles. The rates covered are variable state by state and it is important to do your own research. These comparisons can, however serve as a jumping off point for you to gather more information on your own.
Alfa Vs. Triple AAA: There wasn't a lot of comparative data between the two companies, and for the most part that has more to do with the relative obscurity of Alfa. Alfa only operates in 11 states nationally. Due to Alfa’s lack of availability, Progressive might be the better option, but there are a couple of things we can glean from the data given. Progressive has more options, more benefits, and discounts, as well as successful marketing campaigns. The one area where a comparison can be made is in the customer service department. Progressive has substantially more complaints, and yes, they are a bigger company, that statistically serve more customers, but most people don't hop online to shout praises about an insurance company. Progressive was established in 1937, just a handful of years before Alfa, and true Alfa's expansion has been slow but they have an ocean of loyal customers from those regions, and a commitment to expand in terms of tech, and into new markets. Progressive is probably the better choice, they're more available and have more ways to save. In most cases they will be a little cheaper, but if you live in one of the 11 states where Alfa operates, definitely give them a look.
Alfa Vs. 21st Century: The lack of service area is a huge factor in these comparisons. Neither company directly competes with each other, since 21st Century only operates in California, and while that is a wide area, it's still only one state. Alfa is cheaper and offers more discounts, and the same amount of services. The customer satisfaction level with Alfa is a huge factor as well. 21st Century is a little more expensive than Alfa, compared to the national average, and the customer service level at 21st Century isn't nearly as good as Alfa. Alfa is how smaller businesses should operate whereas, 21st Century just seems like a clumsy city cousin that doesn’t know their way around the insurance wilds. Alfa ends up being a better run, less expensive option for those needing insurance.
Alfa Vs. Triple AAA: Out of the gate Alfa is cheaper. AAA offers a number of extra services over Alfa, with their roadside services being a big draw. AAA also has more lines of credit, and an overall stronger portfolio. Strangely, AAA has less discounts for people to save money and they also charge an annual fee to be a member, above and beyond their premiums. This one is mostly about the expense, but if you travel a lot, those roadside services can be huge, and Alfa so you could be stranded longer is you’re a policyholder with Alfa instead of AAA. Alfa has the edge in price and customer service, but AAA just has more advantages to offer their customers.