How to recover for damages from a accident with unlicensed and uninsured driver? I only have liability insurance.

Yes you can sue the parents for negligent entrustment.  If the car was not insured, the parents may not have non-exempt assets to pay a judgment, so you may be throwing good money after bad.   If your child is a minor, you can file for the child.   If your daughter is an adult, she will have to file the lawsuit. 

If the vehicle is insured under a separate policy, you may be able to recover under that policy even though it may not be in the driver's name. Also, the driver may have assets for which you could recover. Good luck!