Insurance in that situation will only take care of that person up to the ammount that you set. If you are riding with anyone in your car, you are responsible for them... So, Yes... your insurance will pay them the ammount you specify in your insurance policy however If that person Dies or doesn't like the ammount given by the insurance policy they can sue you for everything they can. So because of your age and the fact you still live at home, your parents are responsible for your actions. If you kill someone, while you are driving, the parents of the person you kill ( or whatever) can sue your parents.
hope that makes sense