HB148 Alabama 2025 Session

Summary

Primary Sponsor

Phillip PettusRepresentative

Republican

Session

2025 Regular Session

Title

Motor vehicles; nonresident mandatory insurance requirements, further provided

Summary

HB148 updates Alabama's auto insurance rules to require Alabama minimum coverage for in-state vehicles and to require out-of-state registered vehicles to follow their home state's insurance rules, along with new proof-of-insurance requirements and enforcement.

What This Bill Does

For Alabama-registered vehicles, the insurance must meet Alabama's minimum liability amounts for bodily injury and property damage, with the option of a bond or cash deposit, and the vehicle owner must carry proof of insurance in the vehicle. For vehicles registered in another state, the insurance must conform to that state's requirements. The bill also outlines proof-of-insurance requirements (including what information must be on the card) and allows electronic proof, sets rules for who can issue policies (Alabama-authorized insurers) and various exemptions; and it becomes effective October 1, 2025.

Who It Affects

• Alabama-registered vehicle owners and operators, who must carry proof of Alabama-minimum liability insurance (or acceptable alternatives) in their vehicle and ensure coverage meets state requirements.
• Owners and operators of vehicles registered in another state (including nonresidents and active-duty military stationed in Alabama), whose insurance must conform to the laws of the state where the vehicle is registered.

Key Provisions

• For Alabama-registered vehicles, minimum coverage amounts for bodily injury or death and for destruction of property, plus alternatives such as a motor vehicle liability bond or cash deposit.
• For vehicles registered in another state, the policy, bond, or cash deposit must conform to that state's laws.
• Exemptions from the chapter for certain vehicle types and circumstances (e.g., trailers, government vehicles, FMCSA-regulated vehicles, self-insured vehicles, implements of husbandry, inoperable/stored vehicles, certain bank/finance vehicle scenarios, etc.).
• Evidence of insurance must be carried in the vehicle and can be in electronic format; acceptable forms include insurance cards, declarations pages, binders, rental agreements, etc., with specific required information (vehicle year, make, VIN, insured names, insurer, policy number, effective and expiration dates, NAIC number).
• Only Alabama-authorized insurers may issue policies for vehicles subject to Alabama registration; non-admitted insurers may be used through licensed surplus lines brokers under certain conditions.
• Enforcement requires showing evidence of insurance on request (verifiable via online verification system); presenting invalid or non-existent coverage is a violation.
• Temporary insurance cards and electronic display options are allowed, with rules about what information must appear on the card and how it may be used.
• Effective date: October 1, 2025.

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

Subjects

Motor Vehicles & Traffic