As the owner of the car in most states you have vicarious liability. This is you being held accountable for the actions of those that you give permission to drive your car. You gave your friend permission and hopefully made sure he was able to obtain insurance on the vehicle in his own name when driving the car for the 2 months.
Without a license and without having insurable interest in the car your friend may have found it difficult to get a car insurance policy on the vehicle that would be primary. If that is the case then your insurance as the vehicle owner likely is primary. You should find out what if any insurance coverage he acquired for the car while he was in custody of it.
If the driver did not get insurance that would be primary on the vehicle then you will need to contact your insurance company to determine if they will cover the costs of repairs. It will depend upon the terms of your policy and your insurance company's guidelines if this incident with your friend will be covered.
If your policy has exclusions (such as not covering a driver that is without a valid license) or because you did not inform them that you lent out the car, thus it was garaged and being kept at a different household than your own, then your insurance company may have issues with your claim. To find out what coverages your insurance company will extend to the accident due to the circumstances, you will have to call your agent find out.
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