Vehicle Insurance and Financial Responsibility Flashcards

What does comprehensive auto insurance cover in New Mexico?

Answer: Damage to your vehicle from non-collision events such as theft, fire, hail, or flooding

Comprehensive coverage pays for damage to your vehicle from events other than collisions, including theft, vandalism, natural disasters, and animal strikes.

After an at-fault accident in New Mexico, what typically happens to your insurance premiums?

Answer: They are likely to increase at your next policy renewal

At-fault accidents are typically reported to your insurer and result in higher premiums at renewal, reflecting the increased risk profile.

What is a deductible in the context of New Mexico auto insurance?

Answer: The amount you pay out of pocket before insurance covers the rest of a claim

A deductible is the amount you must pay yourself before your insurance company pays the remaining covered claim amount.

Under New Mexico law, is it legal to show proof of insurance on a mobile phone during a traffic stop?

Answer: Yes — electronic proof of insurance is legally accepted

New Mexico law allows drivers to display electronic proof of insurance on a mobile device as a valid alternative to a printed insurance card.

What information is typically found on a New Mexico proof of insurance card?

Answer: Policy number, insured vehicle VIN, coverage dates, and insurance company name

A proof of insurance card shows the policy number, vehicle identification number (VIN), effective and expiration dates, and the insurance company's name and contact information.

What happens in New Mexico if a driver is involved in an accident and cannot provide proof of insurance?

Answer: Their vehicle may be impounded and they may face fines and license suspension

Drivers who cannot provide proof of insurance at the scene of an accident face fines, potential vehicle impoundment, and license or registration suspension.