Sure, and if a person with minimal income/assets is hit with a judgment, the most logical response would be to declare bankruptcy, thus eliminating any further liability for that judgment. Only a fool would allow the judgment to accrue interest, and watch their wages be garnished for years on end to repay a debt which could easily be discharged in bankruptcy.
Also, most reasonable people insure for risks that they expect might happen, not for remote risks which probably will never happen. It is fairly common to see accidents which involve little or no injury, and just involve property damage. It is much less common to see accidents which involve major injury, and rarer still to see accidents which result in death or permanent injury. Similarly, cars worth $5k or less are extremely common, cars worth $5k to $20k are very common, cars worth $20k to $50k are somewhat common, but cars worth $100k or more are quite rare.
How much insurance coverage is reasonable for a person of low-to-moderate income? That is actually a very good question, and one which we should probably discuss here.
I currently have three vehicles–a 2004 Toyota Corolla, a 2002 Daewoo Lanos, and a 2000 Chevrolet Silverado. All three have the same policy limits of $50,000 bodily injury to one person/$100,000 bodily injury liability per accident, $50,000 property damage per accident, uninsured/underinsured motorist of $50,000 per person/$100,000 per accident, and $5,000 per person medical payments (to cover the injuries of myself/my family regardless of fault). The Corolla still has comprehensive and collision coverage since it’s worth over $3,000. For this, I pay about $950 every 6 months.
I have no idea if most people would consider this level of insurance adequate or not, however it’s not worth it to me to pay a lot more money for higher policy limits which would probably never be needed. In the unlikely event that we are involved in an accident with somebody driving a super-expensive car, worth hundreds of thousands of dollars, the burden is on them to pay for sufficient insurance to cover their car. Sure, they could attempt a judgment, but the generous homestead exemption here protects my house, and if they attempted to garnish my wages, I’d pull out the Chapter 7 trump card.