Montgomery, Ala. (Dec. 18, 2008) – Alfa Insurance today announced a 1.9 percent reduction in auto insurance rates for qualifying Alabama policyholders. The new rates will become effective for new and renewing policies on Jan. 26, 2009. Once the rates are implemented, the rate reduction represents $7 million savings overall for Alfa’s Alabama customers.

“With this reduction, Alfa’s rates will be about 12.7 percent lower than comparable rates 10 years ago,” said Jerry A. Newby, Alfa President and Chief Executive Officer. “As consumers continue to feel the effects of a weak economy, this will surely be welcome news.”

Alfa customers can save even more on their insurance premium by taking advantage of a variety of available discounts, including length-of-service, multi-car, driver training and combination auto-home discounts.

The actual premium adjustment for each policy will vary. Customers are advised to contact their Alfa agent for information about their specific policies. Consumers who are not currently Alfa customers can find information about their nearest agent at www.alfains.com or www.alfains.mobi for mobile users.

Alfa insures about 625,000 vehicles in Alabama. The company and its affiliates provide insurance and other financial services to more than 1 million customers in 12 states.