been in another thread about this recently, it seems you will be covered 3rd party by the insurance (as dictated by Eu law, though they don't like it) however the issue is they can potentially claim the costs back from you personally (i.e. sue you) for these amounts. On my policy is states they reserve the right to claim costs not usually incurred by a normal claim (or words to that effect) - this means if the German police force them to pay out for someones wrote off GT2 your blown headgasket has caused they could very likely come after you personally for the money.

though there are reports of successfull fully comp and armo damage claims, your on the back foot in this scenario IMO.