What type of insurance is mandatory for drivers in Guam?

Liability insurance is mandatory for drivers in Guam because it protects against the financial repercussions of injuries or damages caused to other people or their property in the event of an accident. This type of insurance ensures that victims can receive compensation for injuries or damage regardless of the fault of the driver, which is a crucial element for maintaining public safety on the roads.

In Guam, like many places, the requirement for liability insurance is aimed at preventing drivers from being potentially bankrupt due to claims that exceed their personal assets. It establishes a safeguard both for the driver and for others on the road, reinforcing the concept that all drivers should take responsibility for their actions while operating a vehicle.

Other types of insurance, such as comprehensive, collision, and personal injury protection, while beneficial, are not mandatory to meet the legal driving requirements in Guam. Each serves different purposes, such as covering damage to your own vehicle or medical expenses for your injuries, but they do not fulfill the primary objective of protecting third parties.