An unlicensed driver is not insured, as the insurance coverage follows the car and not the driver. Moreover, it is illegal to drive without a license or with a suspended license.
It is not allowed to loan or give a car to unlicensed drivers, as an accident that is caused by such drivers can lead to high financial loss. This is because the car insurance provider may reject the claim because the car was being driven by an unlicensed driver at the time of the accident. In some states, such as California, the car may be impounded up to 30 days, as stated by Esurance.