NM DMV Vehicle Insurance and Financial Responsibility 2

Question 1

What does comprehensive auto insurance cover in New Mexico?

Accepted Answer

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

Answer

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?

Accepted Answer

They are likely to increase at your next policy renewal

Answer

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?

Accepted Answer

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

Answer

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?

Accepted Answer

Yes — electronic proof of insurance is legally accepted

Answer

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?

Accepted Answer

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

Answer

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.

NM DMV - New Mexico Department of Motor Vehicle Practice Test

NM DMV - New Mexico Department of Motor Vehicle Practice Test

NM DMV Vehicle Insurance and Financial Responsibility 2