NM DMV Vehicle Insurance and Financial Responsibility 1 — Questions and Answers
Question 1: What is the minimum liability insurance required for a vehicle registered in New Mexico?
- $10,000/$20,000/$10,000
- $25,000/$50,000/$10,000 (Correct answer)
- $15,000/$30,000/$10,000
- $50,000/$100,000/$25,000
Correct answer: $25,000/$50,000/$10,000
New Mexico requires minimum liability coverage of $25,000 per person / $50,000 per accident for bodily injury, and $10,000 for property damage.
Question 2: What is the purpose of uninsured motorist coverage in New Mexico?
- It covers damage you cause to another driver's vehicle
- It pays for your damages when the at-fault driver has no insurance (Correct answer)
- It replaces your vehicle if stolen
- It pays your medical bills regardless of fault
Correct answer: It pays for your damages when the at-fault driver has no insurance
Uninsured motorist coverage protects you when the driver who caused the accident carries no liability insurance by paying your resulting damages.
Question 3: What may happen to your New Mexico driver's license if you are caught driving without insurance?
- Nothing — insurance is not verified at traffic stops
- Your license and registration may be suspended (Correct answer)
- You receive only a warning
- Your vehicle is immediately impounded
Correct answer: Your license and registration may be suspended
Driving without the required minimum insurance in New Mexico can result in suspension of both your driver's license and vehicle registration.
Question 4: What is New Mexico's Financial Responsibility Law designed to ensure?
- That all vehicles are inspected annually
- That drivers can pay for damages they cause in accidents (Correct answer)
- That all vehicles are registered with the state
- That drivers pass a defensive driving course
Correct answer: That drivers can pay for damages they cause in accidents
New Mexico's Financial Responsibility Law requires all drivers to be able to pay for damages resulting from accidents they cause, typically through auto insurance.
Question 5: In New Mexico, what document may law enforcement request to verify your insurance at a traffic stop?
- Your vehicle title
- Proof of insurance card or electronic proof on a mobile device (Correct answer)
- Your registration only — insurance is not checked
- A letter from your employer
Correct answer: Proof of insurance card or electronic proof on a mobile device
New Mexico law allows officers to request proof of insurance, which can be shown as a physical card or as an electronic document on a smartphone.
Question 6: What does collision coverage pay for in a New Mexico auto insurance policy?
- Injuries to the other driver after an accident you caused
- Damage to your own vehicle when you collide with another object (Correct answer)
- Medical expenses for all passengers
- Damage caused by weather events such as hail
Correct answer: Damage to your own vehicle when you collide with another object
Collision coverage pays for damage to your own vehicle resulting from a collision with another vehicle or object, regardless of who is at fault.
NM DMV Vehicle Insurance and Financial Responsibility 1
What is the minimum liability insurance required for a vehicle registered in New Mexico?