SB201 Alabama 2023 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Josh CarnleySenator
Republican
Session: Regular Session 2023
Title: Relating to mandatory motor vehicle liability insurance; to amend Section 32-7A-5, Code of Alabama 1975, to provide an exception to allow an individual on active military duty, whose motor vehicle is registered in Alabama but who, as a result of his or her military assignment, is required to reside in another state, to satisfy the requirement for mandatory motor vehicle liability insurance by purchasing liability coverage in the state where residing on active military duty or assignment in an amount equal to or greater than the minimum amount required in Alabama.
Summary: SB201 allows active-duty military members with Alabama-registered vehicles stationed out of state to meet Alabama's mandatory liability insurance requirement by buying coverage in their state of residence that is at least the Alabama minimum.
What This Bill Does
It amends Alabama's motor vehicle insurance law to add an exception for active-duty military personnel. If their vehicle is registered in Alabama but they must reside elsewhere due to duty, they can satisfy the insurance rule by purchasing liability coverage in their state of residence equal to or greater than Alabama's minimum, and they must show proof of coverage. The change does not affect their Alabama license or vehicle registration, and the law takes effect January 1, 2024.

Who It Affects
Active-duty members of the U.S. Armed Forces with Alabama-registered vehicles who are required to reside in another state due to military assignment; they can use out-of-state coverage to meet Alabama's insurance minimum.
Insurance providers and state agencies that verify coverage; they must recognize out-of-state liability policies meeting the Alabama minimum and accept proof of coverage for purposes of the requirement.

Key Provisions
Adds subsection (b) to Section 32-7A-5 to create an exception for active-duty military personnel.
Allows satisfaction of the mandatory insurance requirement by purchasing liability coverage in the state of residence that is equal to or greater than Alabama's minimum (Section 32-7A-4).
Requires proof of coverage to be provided.
Purchase of out-of-state coverage does not invalidate the driver's license or vehicle registration in Alabama.
Effective date: January 1, 2024.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.