We were not aware, but our insurance covers others driving our car, which is why we filed the claim on our insurance. Our insurance covered the damage to their cars and will cover their injuries, etc.
Whether or not she had/has auto insurance doesn't make a difference in this case. As
@nosmirk mentioned, permissive use. She's covered just like we are.
And as
@JC_451 mentioned, our friend is licensed. Just didn't have her own policy because she did not (at the time) have a car.
I digress, in the interest of on-topic-ness, if the argument is "it's reasonable, but also probably not enough to win in court" then I don't know understand how the argument is still that it's reasonable.