If your friend in involved in an accident, both the driver of the car and the registered owner will be responsible for any damages, including medical bills, loss of earnings, etc., caused by the accident. If you have auto insurance, the insurance company may not defend or indemnify you (the registered owner) because you allowed your car to be driven by an unlicensed person. You will be personally responsible for any damages caused by the unlicensed driver. Not a good idea.
Answered on Jun 25th, 2013 at 9:09 PM