I'm surprised you refer to this individual as your 'friend' awitejez. Friends don't do this sort of things to each other. Obviously this clown has so little regard or respect for you that he/she would happily tell you lies and then hammer and abuse your vehicle - with you in it! Why did you let this idiot drive at 60 through a 30mph zone? Didn't you at least tell him to slow down?
I hope you're going to chuck this idiot into touch - he's not your 'friend'. Tell the police he was driving and led you to believe that he was insured. That's the best you can do I think. When they think so little of you do you really want to continue associating with this person and cover for them?