He wants to borrow your car? And if thats your car in the picture, I would tell him........You know I had no car to borrow when I was your age, you need to save and buy your own, Sorry kid but I have worked too hard to get that car, but I will drive you anywhere you need to go!!
Easy, you let him borrow it, that's what insurance is for.... and it doesn't matter WHICH car.
I once dated a man who owned a $90,000 car. The first time I saw it, he asked "want to drive it?" SAME thing the first time my 16 year old daughter saw it. The only real joy in having anything is being able to share it.