The importance of having insurance for protection against financial loss cannot be stressed enough. This is especially true when it comes to coverage for the basics, such as your home insurance, auto insurance, health insurance and life insurance. However, every state in the U.S. has different rules and regulations when it comes to different types of insurance. For example, car insurance companies in Alabama require all drivers to have at least minimum liability insurance, lack there of is illegal and can result in serious repercussions.The state laws governing auto insurance in Alabama also require licensed drivers to carry proof of insurance in their vehicle. The inability to show this proof when stopped by law enforcement officers can also lead to grave consequences, which includes being guilty of improper conduct and facing fines of up to $500. Any given Alabama insurance company also has the right to impose strict fines and even suspend licenses in the case of dealing with repeat offenders.For car insurance, Alabama insurance rates are set according to the overall driving habits of state drivers. Obtaining multiple insurance quotes in Alabama from different lenders is a good way to secure competitive insurance rates.