Does you insurance have the police report yet? They won't do much until they have that and liability is established. I know it is clear cut, but they won't move much until they have that.
And sadly, what kind of person loans a car to someone with no license and insurance. I doubt they will be stand up and say yes I did loan the car to Joe.
Chances are pretty strong, They will say Joe stole the car, given the above. And try and get out of it. Hope I am wrong, but it is sure funny how stories will change in a deal like this.
Good luck with it