The bill amends Sections 32-7A-4, 32-7A-5, and 32-7A-6 of the Code of Alabama 1975 to clarify the requirements for mandatory automobile liability insurance for vehicles registered in Alabama and those registered in other states. It introduces new language stating that liability insurance for motor vehicles registered in another state must conform to that state's laws. For vehicles registered in Alabama, the insurance policy must meet the minimum coverage amounts for bodily injury and property damage as specified in Section 32-7-6(c). The bill also removes references to certain subsections and clarifies that only insurers authorized to operate in Alabama can issue policies for vehicles registered in the state. Additionally, it outlines exemptions from these insurance requirements for specific vehicle types and allows active military personnel to meet insurance requirements through coverage in their state of residence, provided it meets or exceeds Alabama's minimum standards.

The bill also introduces amendments regarding insurance cards and evidence of insurance in Alabama. Key insertions include requirements for insurance cards to indicate specific policy types, such as "FLEET" or "NONOWNER POLICY," and allows temporary insurance cards to be issued without displaying the policy number. It specifies that certain vehicle details are not required on insurance documents for commercial or nonowner policies. Furthermore, the bill emphasizes that evidence of insurance can be presented in both tangible and electronic formats, ensuring that law enforcement cannot access other content on a mobile device used to display insurance. The act is set to take effect on October 1, 2025, and includes deletions of previous language governing the issuance of insurance cards, streamlining the process to align with updated regulations.