Vehicle Insurance and Financial Responsibility Flashcards

What is the SR-22 form used for in New Mexico?

Answer: It is filed by your insurer to verify you carry the required minimum insurance, often required after serious violations

An SR-22 is a certificate filed by your auto insurance company with the New Mexico MVD to prove you carry the state-required minimum liability coverage, typically required after DUI or serious traffic violations.

How long is an SR-22 filing typically required in New Mexico following a DUI conviction?

Answer: 3 years

New Mexico typically requires DUI offenders to maintain SR-22 certification for three years following the conviction.

What is the penalty for a first offense of driving without insurance in New Mexico?

Answer: A fine up to $300 and possible license/registration suspension

A first offense for driving uninsured in New Mexico can result in a fine of up to $300, plus possible suspension of the driver's license and vehicle registration.

If you sell your vehicle in New Mexico, what should you do about your auto insurance?

Answer: Cancel or adjust the policy and notify your insurer of the sale

After selling your vehicle, you should notify your insurer and cancel or modify the policy accordingly, as you are no longer the owner of the insured vehicle.

Which of the following is NOT covered by standard New Mexico liability insurance?

Answer: Damage to your own vehicle

Liability insurance only covers damages you cause to others — it does not pay for damage to your own vehicle; that requires collision or comprehensive coverage.

What does 'per occurrence' mean in a New Mexico auto insurance policy?

Answer: The total coverage limit for all claims arising from a single accident

A per-occurrence (per-accident) limit is the maximum total amount an insurance company will pay for all injuries and damages resulting from a single accident.