Windows OS (particularly version 8) uses administrator's account for software installation that's excessive to my mind as some third-party software (installer) has unlimited privileges in my PC (even within limited period of time). Don't think an installer really needs such kind of power. In Windows Account Manager didn't find a special type of account for software installation. Neither could find self-made solutions on the Internet. The questions are:
Installers often need full access to the entire filesystem, as well as registry permissions, network access, ability to install hardware device drivers, launch other packages/prerequisites, and more. Each installer needs a different set of permissions, so using an administrator account is an "easy" way to ensure the installer can do what it needs.
The real answer is that you should only install software that you trust - You can tweak permissions all you want on a custom account, but allowing untrusted software to run is always a bad idea. No amount of permissions tweaking will stop all malicious software once it is executed locally.
That being said, my preferred method is to use or create a local administrator account that has no domain permissions, limiting all operations to the local computer.