Is it legal for a car insurance company to do this?

Is it legal for a car insurance company to do this?

I was in a no-fault wreck on Christmas Eve(slid into two cars on ice). The damages were about $3500 to my car. A buff job for the first car, and a chrome polish on the bumper of the old truck. They are not worried about making an insurance claim. There are not enough damages. First off, my car is fully insured with Progressive on my mother-in-laws insurance. The car is in mine and my spouse's name. I am not on the insurance because it was not allowing my mother-in-law to add me. It kept giving her an error. She was however able to add my spouse. I received a call on Saturday from a claims specialist. They told me that because I am not on the insurance, they may not cover the repairs. They are looking into whether or not she in fact did try to add me. If they can't find that she did try to add me, they said they will not cover it. Shouldn't they pay for it no matter what. Seeing how the car has comp. and collision? This is the first time I've had to deal with a claim on the insurance, so I really don't know anything about the process. I'm going in blindfolded. Everyone I've talked to has said that it doesn't matter who is driving it, if the car is insured, it's the insurance companies responsibility to cover the costs. It would be no different than you letting your neighbor borrow your car. Am I wrong??? If you have any comments or advice, please help me out. I need something to go off to work with them! Or more like against them. Thank you!

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