While car insurance typically covers a car, in actuality it covers the pairing of vehicle and operator. If the car is being driven by someone not named on the policy as a known operator of the vehicle, depending on the state, the entire insurance policy may be null and void.
Since the kid had no license, he can't be named as an operator on the policy, so even if the car was insured, he wasn't insured to be driving it.
This whole thing begs the question: what were you doing driving a car without a license?