The bill amends Sections 32-7A-4, 32-7A-5, and 32-7A-6 of the Code of Alabama 1975 to clarify automobile liability insurance requirements for vehicles registered in Alabama and other states. Key insertions include a stipulation that liability insurance policies for out-of-state vehicles must conform to the laws of their state of registration, while vehicles registered in Alabama must meet the minimum coverage amounts specified in Section 32-7-6(c). The bill also removes certain subsections and emphasizes that only insurers authorized to operate in Alabama can issue policies for registered vehicles. Additionally, it maintains exemptions for specific vehicles and operators, such as government-owned vehicles or those covered by self-insurance certificates.

The bill further introduces amendments regarding insurance cards and evidence of insurance, requiring cards to indicate specific policy types, such as "FLEET" or "NONOWNER POLICY." It allows temporary insurance cards to be issued without displaying the policy number, while still requiring essential information. The bill mandates that evidence of insurance must be presented to law enforcement upon request and outlines penalties for non-compliance or presenting invalid evidence. It also permits insurance evidence to be provided in both tangible and electronic formats, ensuring that mobile device displays do not grant law enforcement access to other content. The act is set to take effect on October 1, 2025.