This isn't much different from lending your car to someone without asking if they have a driver's license, period? I mean it's slightly different (I'm not sure if the car is automatically impounded for driving without a license) but I think they're making a big deal out of a fairly minor detail. If your friend borrows your car knowing full well that if they're pulled over it's going to be evaluated... maybe in general a good sign it's time to reevaluate that friendship?