In Alabama no person shall operate, register or maintain registration of, and no owner shall permit another person to operate, register or maintain registration of, a motor vehicle designed to be used on a public highway unless the motor vehicle is covered by a liability insurance policy.

The type of liability insurance required in Alabama is Bodily Injury (BI) and Property Damage (PD). The minimum amounts required are $20,000 for injury liability for one person in an accident, $40,000 for all injuries in an accident, and $10,000 for property damage in an accident. The policy must be issued by an insurance company qualified to issue motor vehicle liability insurance in Alabama.

Alabama law requires a motorist to carry liability insurance, not pay a certain amount if you get rear-ended and have whiplash. If this happened to you then you would need to place an insurance claim against the at-fault party's bodily injury policy. You then would then normally obtain a settlement that would be based on what your medical bills are. Depending upon how high your medical expenses are from the accident, you could be paid up to the limits of the other party's BI limits.