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Alabama is a tort state, which means that Alabama drivers are financially responsible for the damage and injury they cause in an auto accident. Liability protection insures you for these costs, and is required in Alabama.
The state's liability minimums are 20/40/10. (That's $20,000 per person for injuries you cause to the other party, up to $40,000 for all, and $10,000 for damage you cause to the other party's property.) Remember, these are are state minimums, and you should consider higher levels of coverage, particularly if you have assets to protect. In addition, most Alabama auto insurance companies will offer optional coverages such that cover claims related to medical payments, collision, comprehensive, and uninsured and underinsured motorists bodily injury.