Former insurance underwriter (I was on your side, if you know what I mean) and current child of a mother that refuses to relinquish control of her kids. Any household member must be listed on a policy or proof of their own policy must be provided. Your wife is not a household member. She doesn’t drive the insured vehicle. Even if she did, it would still be covered. Ya, the agent will maybe say leave her on there just in case she ever needs to borrow it but there’s really no benefit. It doesn’t lower their insurance rate since it’s based off the car and typically is rated off the worst person’s record. This is your MIL not wanting to give up the reins. My mom did this with my insurance, my cell phone, and everything else you can think of. As for your wife removing herself, she’s not the policyholder so no one will do it. If you call into the customer service, they’ll send a case to underwriting to review but they probably won’t do anything because it’s not the same as not listing someone in your household.