Most state require all drivers to have some sort of insurance. Most people's insurances vary due to a few factors. Those factors include, good driving, accidents, tickets, how far you drive, and what kind or car you drive. If someone drives your car with your permission, and gets an accident, it will be your insurances responsibility to cover not only you car but anyone else's car as well as any damage to property. It will also cause your rates to go up, not the others person. In Michigan we have no fault insurance, meaning that if there is an accident, even if it is not your fault, you insurance company can up your premium.
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Senario: If you have $5,000 of deductible for property damage, and you run into someone's home, doing $20,000 worth of damage, you have to pay the $15,000 that your insurance company will not.
As you get older, your odds of getting in an accident go down significantly
-25 year old have a 11% of getting in an accident
-21 year old have a 31% of getting in an accident