As per Alabama auto insurance laws, it is mandatory for all drivers to carry adequate insurance coverage on their vehicles. This is in the best interest of the drivers only, as the liability insurance coverage protects (at least financially) them on the road in case of an accident. An alternative way to meet this legal requirement is to make a cash deposit $50000 with the Alabama State treasure. Another alternative is to secure a liability bond of the same value ($50000). Following is a brief rundown on some of the most important aspects of these laws that you must be well aware of.