The bill amends Sections 32-7A-4, 32-7A-5, and 32-7A-6 of the Code of Alabama 1975 to enhance the requirements for automobile liability insurance for vehicles registered in Alabama and those from other states. Key insertions include a mandate that vehicles registered in Alabama must have liability insurance that meets the minimum amounts for bodily injury and property damage as outlined in Section 32-7-6(c). For vehicles registered in other states, the insurance must comply with that state's laws. The bill also requires that evidence of insurance be carried in the vehicle, which can take various forms, such as an insurance card or rental agreement. Additionally, it specifies that only insurers authorized to operate in Alabama can issue policies for vehicles registered in the state.

The bill removes certain exemptions related to vehicles registered in other jurisdictions, specifically deleting the exemption for vehicles not legally required to be registered in Alabama. It also allows individuals on active military duty to meet insurance requirements by purchasing coverage in their state of residence, as long as it meets or exceeds Alabama's minimum standards. Furthermore, the bill introduces amendments regarding insurance cards, allowing insurers to specify policy types and clarifying that certain vehicle information is not required on commercial or nonowner policy cards. It also permits temporary insurance cards to be issued without a policy number and allows for electronic proof of insurance, ensuring that law enforcement cannot access other content on mobile devices. The act is set to take effect on October 1, 2025.