NM DMV Vehicle Insurance and Financial Responsibility 2 — Questions and Answers
Question 1: What does comprehensive auto insurance cover in New Mexico?
- Bodily injury to others only
- Damage to your vehicle from non-collision events such as theft, fire, hail, or flooding (Correct answer)
- Liability for accidents you cause
- Medical payments for your passengers only
Correct 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.
Question 2: After an at-fault accident in New Mexico, what typically happens to your insurance premiums?
- They remain the same under state law
- They decrease since you have now met your deductible
- They are likely to increase at your next policy renewal (Correct answer)
- They are refunded for the accident period
Correct 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.
Question 3: What is a deductible in the context of New Mexico auto insurance?
- The maximum your insurer will ever pay
- The amount you pay out of pocket before insurance covers the rest of a claim (Correct answer)
- The monthly premium charged by your insurer
- A penalty for filing too many claims
Correct 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.
Question 4: Under New Mexico law, is it legal to show proof of insurance on a mobile phone during a traffic stop?
- No — only a printed insurance card is accepted
- Yes — electronic proof of insurance is legally accepted (Correct answer)
- Only if the officer requests it specifically in writing
- Only for commercial vehicles
Correct 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.
Question 5: What information is typically found on a New Mexico proof of insurance card?
- Driver's license number and traffic history
- Policy number, insured vehicle VIN, coverage dates, and insurance company name (Correct answer)
- Medical coverage limits and deductibles
- Social Security number and credit score
Correct 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.
Question 6: What happens in New Mexico if a driver is involved in an accident and cannot provide proof of insurance?
- They are issued a warning and given 10 days to provide proof
- Their vehicle may be impounded and they may face fines and license suspension (Correct answer)
- The accident is treated as if they were insured
- They must pay the other party immediately at the scene
Correct 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.
NM DMV Vehicle Insurance and Financial Responsibility 2
What does comprehensive auto insurance cover in New Mexico?