If your 16-year-old daughter causes a small accident with no injury how much will your rates go up or will the family policy be cancelled?
They shouldn't cancel your plan I was in an accident when I was 16 and we kept the same insurance. As for how much it goes up depends on which insurance company you have.
Who is repsonsible if someone you did not give permission and does not have a license causes an accident my daughter who is listed on my policy did give permission?
Not necessarily. In most cases you have to be notified in writing as to when and why you're being cancelled. Most causes of cancellation are from non-payment of premiums, and somewhere in the bill it states "policy can be cancelled if premium if not paid by due date". Otherwise, most insurance companies are required by law to notify you.