Legal Question in Insurance Law in California

Re: should I claim given permission to unlicensed driver

And what did the insurer say about paying you for your loss? If he had permission, or if he didn't? If he didn't, they might sue him for their costs of repair. If he did, if he is an excluded driver, you might not get paid. Have someone who knows what they are doing read your policy and advise you before you do anything else. Permission for driving can be express or implied, so don't go giving any recorded or other statements until you know what your rights are and what is best for you.

Re: should I claim given permission to unlicensed driver

Don't lie to the insurance company. You will have to sign your statement under penalty of perjury, so if you falsely tell the insurer you gave your boyfriend permission to use the car you will be guilty of a felony and may be prosecuted for it.

Are you sure the company wants you to have your boyfriend prosecuted? Prosecution is a criminal procedure, but the insurer is probably more interested in suing him civilly to recover the money it pays you on your claim. You will not be able to persuade the insurer to give you money without trying to get it back from the person who caused the loss, especially if he can afford to pay the judgment.

Your best option may be to get the money from your boyfriend directly (if he can afford it) and bypass the insurance company, since either way he will end up paying for your loss.