Buying from an agency on installments and being forced to take out insurance
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The second question of Fatwa No. ( 4910 ):
Q2: A man bought a car on installments because he could not pay for it in cash. At that time, the agency for this car forced him to take out insurance on his car. What is your opinion, O your Excellencies and Generosities, regarding this insurance and other types of insurance, such as life insurance and others?
A2: Buying the car on installments is permissible if the car is known, the price is known, and each installment with its due date is known. As for insuring the car, it is forbidden, as is life insurance, insurance on body parts, insurance on goods, and all other types of commercial insurance; because of the excessive uncertainty, gambling, and consuming wealth unjustly involved in it.
Q2: A man bought a car on installments because he could not pay for it in cash. At that time, the agency for this car forced him to take out insurance on his car. What is your opinion, O your Excellencies and Generosities, regarding this insurance and other types of insurance, such as life insurance and others?
A2: Buying the car on installments is permissible if the car is known, the price is known, and each installment with its due date is known. As for insuring the car, it is forbidden, as is life insurance, insurance on body parts, insurance on goods, and all other types of commercial insurance; because of the excessive uncertainty, gambling, and consuming wealth unjustly involved in it.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.