Payment for Driving Without a License
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Question
A person drove a car without an Israeli license (he had a Belgian driving license) and another car collided with him in a manner that leaves no doubt that the second car is at fault. The third-party insurance of the second car claims they do not insure because they were driving without a license. The question is whether the offending driver is obligated to pay for the damages.
Answer
Hello
According to the instructions of the Gaon, Rabbi Avraham Fried, shlita:
If the injured party was driving according to traffic rules, the offender is obligated to pay him even though he does not have a license. However, if the injured party did not drive according to traffic rules, the offender is exempt from paying.
Source
If he did not drive according to traffic rules, he is considered to be acting without permission.
Shulchan Aruch, Choshen Mishpat, Siman 378.