> In California, right now, you can drive a car with only $35K in liability insurance... which is crazy. Sure, that will cover most cars, but it won't even cover a moderate injury. Very few people have the assets required to pay for a serious injury, and therefore, the victim is usually under-compensated.

In Germany, there are regulations for this. The mandatory insurance has a minimum coverage of 7.5M € for injuries, 1.12M € for property damages and 50 k€ for other accident related costs. And yet our car insurances are affordable AND the insurers make really nice profits.