Most insurance company reviews on the Internet are lacking in useful information. My insurance company reviews & insurance shopping tips, along with my evaluation of the major auto insurance & home insurance companies by state, should help you determine the best insurance company for you. This blog post will take a closer look at the Alfa insurance companies
About Alfa Insurance: Alfa Insurance, not to be confused with Alpha Insurance, which is a different auto insurance company, was founded in 1946, as Alabama Farmers Federation, to provide fire insurance to its members, mostly Farmers. Alfa Insurance is headquartered in Montgomery, Alabama, and now has 1 million customers in 12 states.
Alfa Insurance Group consists of three insurance companies:
Alfa Insurance — This company sells auto & home insurance through its own agents in Alabama, Georgia, & Mississippi.
Alfa Alliance — This company sells auto & home insurance through independent agents in North Carolina, Tennessee, & Virginia.
Alfa Vision — This company sells nonstandard auto insurance (drivers with accidents, tickets, DUIs, no insurance, or few years driving experience, etc.) through independent agents in Arkansas, Indiana, Kentucky, Missouri, Ohio, Tennessee, Texas, & Virginia.
You can see the last 3 years of complaint ratios for all the Alfa Insurance companies on my Web site. I have posted the latest complaint statistics for 2011, 2010, & 2009 (2012 will be available Aug 2013) which you can see here.
What if you have no insurance or a bad driving record?: Even if you have had a lapse in auto insurance coverage, tickets, accidents, or you are just licensed, Alfa Vision insurance should be able to help you in the states it operates, as listed above. You can go to the Alfa Insurance company Web site to find a local agent.
Alfa Insurance Claims & Customer Service: JD Power rates Alfa Insurance at 3 power circles (about average) for overall customer satisfaction in its 2011 National Auto Insurance Survey. In addition to the Overall Satisfaction being rated about average, all the other individual categories making up the Overall Satisfaction, such as Policy Offerings, Pricing, Billing & Payment, & Contacting The Insurer, were also rated at 3 power circles (about average). The industry average for this study was 790 out of 1,000 points. Alfa Insurance scored 787 out of 1,000 points for this study.
I checked the Internet for customer reviews of Alfa Insurance, and found the typical complaints, mainly about claims, you find with all insurance companies.
The JD PowerAuto Insurance Claims Study does not rate Alfa Insurance, probably because of its regional nature, and small market share nationwide.
JD Power has a new survey for 2011, measuring the auto insurance purchasing experience. As with the auto claims survey, Alfa was not rated.
Alfa Insurance received a 4 power circles (better than most) rating in the 2010 JD Power National Homeowners Insurance Study, but it was not rated for the 2011 JD Power National Homeowners Insurance Study.
My assessment: According to JD Power, Alfa Insurance is your average insurance company. However, because Alfa does not have a large market share nationally, the only JD Power survey we have to use is the 2011 National Auto Insurance Study. Like all auto & home insurance companies, you will hear claims stories from people saying Alfa is the worst company in the world. Other customers are extremely happy with how their claims were settled by Alfa.
Examining the 2010 national complaint ratios from my Web site (linked above), if you are in Alabama, Georgia, or Mississippi, and qualify for Alfa Mutual Insurance Company, or Alfa Mutual General Insurance Company, for your auto insurance or home insurance, Alfa may be a very good choice for you, if they offer you a good price or better coverage, since the complaint ratios are better (in some cases, much better) than the average insurance company.
The other Alfa insurance companies have higher than average complaint ratios, for either auto insurance or home insurance.
If you have a bad driving record, under 3 years driving experience, no insurance, etc., do not be too alarmed by Alfa Vision’s complaint ratio, since high complaint ratios are common with nonstandard auto insurance companies. If Alfa Vision has a good price for you, consider the cost & complaint ratios of the other nonstandard auto insurance companies for which you qualify.
When you can’t qualify for standard auto insurance, it can be hard to find a company willing to insure you, and the cost of the insurance can be very expensive, so price may be more important to you than the company’s complaint ratio. When you are in this situation, it is even more important to get price quotes from as many insurance companies willing to insure you. Although your auto insurance is expensive, you can still save a lot of money by shopping for the best price.
Few auto & home insurance companies have great reputations for customer service & claims handling. My opinion of Alfa is it’s like most insurance companies — mediocre.
If you are like me, the best insurance company has the lowest price for you. Many people pay too much for their auto insurance because they never shop for better rates, or if they do shop, they don’t check the rates of enough companies. The ad below will take you to links to get online quotes from leading Home, Auto, Health, & Life insurance companies in your area.
How to read complaint ratios: Lower than “1″ is better than average. The lower the complaint ratio, the fewer confirmed complaints against the company. The higher the complaint ratio, the more confirmed complaints against the company. For example, .18 is very good, but 3.5 is not so good.
Have you had any experience with Alfa insurance? What do you think about this company? Please leave a comment on my facebook page. Or, you can e-mail me at firstname.lastname@example.org if you have questions and would like my help. Follow me on Twitter for important insurance consumer news and new blog entries at CarInsWatch.