A person may not operate, register, or keep a highway vehicle registered unless it has the required liability coverage, bond, or cash deposit.
(a) 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, a commercial automobile liability insurance policy, motor vehicle liability bond, or deposit of cash. (b)(1) For motor vehicles registered in this state, all of the following shall apply: a. The liability insurance policy or commercial automobile liability insurance policy shall be issued in amounts no less than the minimum amounts set for bodily injury or death and for destruction of property under Section 32-7-6(c). b. The motor vehicle liability bond shall be in the amount of not less than the minimum amounts of liability coverage for bodily injury or death and for destruction of property under Section 32-7-6(c). The bond shall be conditioned on the payment of the amount of any judgment rendered against the principal in the bond or any person responsible for the operation of the principal’s motor vehicle with his or her express or implied consent, arising from injury, death, or damage sustained through the use, operation, maintenance, or control of the motor vehicle within the State of Alabama. c. The deposit of cash with the State Treasurer shall be in the amount of not less than the minimum amounts set for bodily injury or death and for destruction of property under Section 32-7-6(c). (2) For motor vehicles registered in another state, the liability insurance policy, commercial automobile liability insurance policy, motor vehicle liability bond, or deposit of cash shall conform to the requirements of the laws of the state of registration. (c) Only an insurer authorized to do business in this state shall issue a policy pursuant to this section for any vehicle subject to registration under Chapter 12 of Title 40. Nothing in this section shall deprive an insurer of any policy defense available at common law. (d) Notwithstanding subsection (c), any insurance policies issued by non-admitted insurance companies procured through Alabama licensed surplus lines insurance brokers, pursuant to Section 27-10-20 for the amounts prescribed under Section 32-7-6(c), shall be deemed to be in compliance with this chapter if the brokers are licensed with the Department of Insurance and the brokers transfer all required insurance information in the manner and frequency as prescribed by the department.