What to do if my son was driving his friend's car and rear-ended another kid's car?

Question Details: The kid left the scene before my son and the police were not called. The dad of my son's friend has claimed to his insurance company that my son did not have permission to drive the car. The father of the kid my son rear-ended has since come and wants the bumper of his sons car replaced. Because he claims my son did not have permission to drive the car his insurance denied the claim to fix the bumper. Now the dad is coming to my son to have him fix the bumper; it is a rusted out mess and the damage was extremely minimal in a completely rusted out spot. Since they did not call the police, is my son liable? We do have pictures of the bumper and car.

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