The shopping bag is a good tip and a great way to get more use out of all the plastic shopping bags that tend to accumulate over time.
I also use these to cover up side mirrors so you don't fill the inside of the mirror housing up with water that will then drip the rest of the time you're detailing the car. Simply cover the mirror housing before washing and then use a spray detailer to actually clean the exterior of the housing and a glass cleaner on the mirror.
See this article,
The lowly plastic bag tip
The idea or practice behind using plastic wrap and tinfoil is you always
FIRST cover the component with the plastic wrap, that's the "waterproofing" portion of protecting components.
After wrapping anything you want to protect with plastic wrap then you can use tape and/or tinfoil around the plastic to help secure the plastic in place.
I've never just used tinfoil and don't teach this in any of my classes, it's always plastic wrap first and then tape or tape and tinfoil over the plastic.
And you're right about older cars, if they did have the protective rubber cap over the stud and wire on the back they are often missing or punctured and this would cause a short problem to put a conductive tin foil cover over the alternator by itself.
Another tip...
Don't disconnect the battery in a customer's car without first getting permission as you risk losing anything saved in any type of memory device, for example station pre-sets in the stereo
at a minimum.
When in doubt about any car engine and what should be protected, check out this article,
Engine Detailing
How to use a Discussion Forum to Detail an Engine