The basic Car Insurance Requirements in Alabama are as follows:

Liability Insurance is a minimum requirement and a low cost car insurance option as long as the vehicle is not financed.

The liability Minimums are 20/40/10 (Bodily Injury and Property Damage)
20/40/10 Explained:

The first 20 represents $20,000, the maximum coverage for one person's injuries, $40,000 for the total coverage for all injuries sustained in one incident and last but not least $10,000 for the property damage maximum coverage amount.

Alabama Car Insurance Laws:
Insurance proof is a requirement when driving and at registration. The First Offense Penalty is a fine of $500, suspension of license

Alabama Insurance Information, News ,Q&A and More.

One alabama resident wanted to know whether or not his parents would be covered even though they were not listed on the insurance policy. The answer to this is, in most cases yes. This will however depend on the coverage purchased. Some high risk policies have limitations, for most policies including comprehensive and collision, the car will in most cases be covered. The best thing to do is play it safe and ask the agent you're insured with since the policy terms and conditions will differ between companies.