The only insurance coverage that matters is medical on yourself and your family, and your house. After that comes legal requirements. Anything else is a total waste of money.
So you were nearly killed cycling. Sounds like you are complaining that the other guy didn't have enough liability coverage. As long as you had enough medical coverage, don't worry about the other guy's liability coverage. Insurance lawyers can't just waltz in and start taking away his house and car. It varies per state but for most there are protections against that. His house and car are commonly exempt from seizure by judgement creditors unless he lives in a mansion or is driving a supercar. If he's rich and has serious cash on hand they can take that but otherwise nothing happens to him.
Your story kinda sounds like you had crappy medical coverage and you were hoping the other guy's liability would carry you. That's really a poor way to go. Never skimp on medical coverage. If someone runs me over, it's not going to matter if they have big liability coverage. I am well insured medically.
TLDR; buy good medical insurance, NOT liability or collision.
I actually have very good benefits that covered everything but as I said, unless you're in one of the few states that have anti-subrogation laws, your medical and disability insurance will place a lien against anything you get in order to recoup their loss since it was the other persons fault. Even if you are left paralyzed (true story where a guys medical insurance agreed to take "less" by only taking $7,500 of his settlement).
My point is more about making folks aware of the real world scenarios from both sides of this. Everyone is going to be in a different place and I get that, but even if you have state minimum coverage, which varies from 10k (seriously Florida?) to 50k, that isn't to say someone won't pass on that and opt to at least try and own your ass for the next 20 years if you are on the giving end. And yes it's unlikely that you'll do serious harm with a Z125 unless you hit another motorcyclist, a pedestrian, or via some weird freakish accident but this applies to cars as well. I hate insurance companies and they are worse than lawyers but I pay the bastards to carry the risk in order to protect my own assets. That's the point I'm making. If you don't have anything to protect than I get not worrying about it but you can really screw someone else over if you're on the giving end. Go through what I and my family went through and trust me... you'll get it. Even more so if you knew some of my friends stories as well. One of which is a self employed OTR driver who was hit on his Harley by a kid whose insurance lapsed at midnight the night before. He went through the bone crusher basically and couldn't work for months.
I'll also point out that if you don't have your insurance companies by the balls they will try and use anything and everything to deny your claims. Track days, speeding, conflicting accounts of what happened and who's at fault, etc. They don't get rich paying out claims but they sure do by taking your money and not paying out if they can and some of the biggest advertisers are the worst offenders. Fortunately in my case I was able to squeeze really hard.
Stay safe out there!