Insurance won't cover it. They likely did not have enough hours.
Insurance covers theft.
This was UNBELIEVABLY STUPID
. Certainly Darwin Award material.
1. The student pilot did not have a license
2. As a student pilot he was expressly forbidden to carry passengers (unless someone else was acting as pilot in command)
3. Didn't have a multiengine rating (probably had never flown anything other than a single before)
4. Had no IFR rating (he could only safely fly when he could see the horizon)
5. Took off AT NIGHT (which ratchets everything up a notch) with a low overcast ceiling.
It is absolutely no surprise whatsoever that he almost immediately lost control and crashed. Sad that he took two other teenagers with him.