Kumar, whether you are licensed or not is not the issue. Your insurance, or lack thereof, if the issue. Why did you opt to not get insurance on the rental car, when you knew you did not have any? You must operate a car with insurance at all times. Since you make the choice to not pay extra to have the rental car business insure the vehicle, you are responsible for the poor driving choices you made, and any damages that are the result of that.
Whether or not you were misguided about your driver's license is not the main area of your concern. The fact that you chose not to purchase the insurance coverage, particularly since you did not appear to have your own policy that could come into affect, is not the legal fault of the rental company, who no doubt would have been more than happy to have you purchase the coverage through them. You are on your own.
Under a vicarious liability law, the vehicle owner becomes legally liable for injuries and damages caused by a permissive driver of the motor vehicle. Vicarious liability is the imposition of liability on one person for the actionable conduct of another, based solely on a relationship between the two persons. The Graves Amendment is a federal statute that abolishes vicarious liability of companies that rent or lease motor vehicles based on the negligent driving of their customers. As such the Graves Amendment works against you with respect to your claims that you were mislead by the rental agent. Accordingly since you did not purchase the rental insurance and you did not have your own insurance you would be the party to address any damages that you have caused and there is no regress against the rental company.
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