If you were warned and apparently found at fault for the accident by the police I am not sure under what law you would sue the other driver. Just because he was driving without a license does not make him at fault. If you failed to yield, even though the driver had their blinker on you still normally need to make sure they turn before you pull out since there is the possibility that a driver may realize that that is not the street they want to turn on, accidentally hit their blinker on, etc and not turn.

As for what will happen to the other driver hopefully he was cited for driving without a license. If a person also knowingly let him take their car and thus let an unlicensed driver operate their vehicle then the owner may also be in trouble with the law.

In MA, Chapter 90: Section 10 of the General Laws of Massachusetts discusses the operation of motor vehicle without license. Here it states in part that:

No person under sixteen years of age shall operate a motor vehicle upon any way. No other person shall so operate unless licensed by the registrar unless he possesses a receipt issued under section eight for persons licensed in another state or country or unless he possesses a valid learner’s permit issued under Massachusetts law.

It continues to say that no person shall operate on the ways of the commonwealth any motor vehicle, whether registered in this commonwealth or elsewhere, if the registrar shall have suspended or revoked any license to operate motor vehicles issued to him under this chapter, or shall have suspended his right to operate such vehicles, and such license or right has not been restored or a new license to operate motor vehicles has not been issued to him. Operation of a motor vehicle in violation of this paragraph shall be subject to the same penalties as provided in section twenty-three for operation after suspension or revocation and before restoration or issuance of a new license or the restoration of the right to operate.

Section 23 of the law states that any person convicted of operating a motor vehicle after his license to operate has been suspended or revoked, or after notice of the suspension or revocation of his right to operate a motor vehicle without a license has been issued by the registrar and received by such person or by his agent or employer, and prior to the restoration of such license or right to operate or to the issuance to him of a new license to operate, and any person convicted of operating or causing or permitting any other person to operate a motor vehicle after the certificate of registration for such vehicle has been suspended or revoked .... shall be punished for a first offence by a fine of not less than five hundred nor more than one thousand dollars or by imprisonment for not more than ten days, or both, and for any subsequent offence by imprisonment for not less than sixty days nor more than one year.

Section 12 of the MGL notes in subsection (b) that whoever knowingly permits a motor vehicle owned by him or under his control to be operated by a person who is unlicensed or whose license has been suspended or revoked shall be punished by 1 year in the house of correction and a fine of not more than $500 for a first offense or, for a second or subsequent offense by a fine of not more than $1,000 or imprisonment in a house of correction for not more than 2 1/2 years, or both.

Subsection (d) adds that the registrar may suspend for not more than 1 year the motor vehicle registration of a vehicle used in the commission of a violation of this section or the license or right to operate of the person who commits a violation of this section, or both.

As you can see from reading these passages of MA law the potential penalties for driving without a license in Massachusetts are quite severe.

If you want to know if the person was cited and more about the penalties he and possibly the car owner will face try contacting the police listed on your accident report. As for the damages to your car, since it would appear from your warning by the police you would be found at fault and thus would need to use your collision coverage to repair your vehicle. The owner of the other vehicle in fact may place a claim through your property damage liability policy for the damages their car sustained in the accident.