Auto Insurance Claims: hit by unauthorized driver, fault coverage, other vehicles

Question
Hi,

I was rear-ended by a driver in a insured vehicle, he was w/o a license on him so he was cited.  Police say he was 100% at fault, we exchange info.  We find out the vehicle he is driving isn't his, the owner told her insurance company that she "did not give him permission to drive the car".

My insurance company and the other vehicles insurance company are having me claim "no fault" so I can get my vehicle fixed.  Meanwhile the vehicle that hit me isn't paying a dime to me or my insurance agency, the words of the both insurance company's was that the other party cannot be held responsible.  Help please?  I'm getting blamed and paying my $500 deductible for something I didn't do!

Answer
I'm not sure who's "blaming" you as you already stated that it is going through "no fault" coverage.  

They only way that the owner of the other vehicle can claim no permissive use is if they are willing to file a stolen vehicle report after the driver.  If they do not chose to do this, then the use is permissive and the other company has to pay.