Insurance for Cars
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Question: What is the Islamic ruling on insurance,For example, : where a person pays a sum of money every month or every year to an insurance company to insure his car in case an accident occurs and it is damaged? They cover the cost of repairing it. It may or may not happen that the car suffers any damage throughout the year, yet he is still obligated to pay this annual fee. Is such a transaction permissible or not?
Answer: This insurance is not permissible. Insuring a car in the manner you described, where you pay a sum of money and the company undertakes to repair your car if anything happens to it, whether the damage is minor or major, is not permissible because it involves gambling and risk, and it involves consuming wealth unjustly. Therefore, this insurance is not permissible.
It is obligatory for a person to place his reliance on Allah (Glorified and Exalted is He). If something happens to him by the decree of Allah (Glorified and Exalted is He), he should be patient and cover the expenses that result from it, and the damages that result from it, from his own wealth, not from the wealth of the insurance company.
Allah (Glorified and Exalted is He) is the One who provides sustenance and helps with such matters without a person having to resort to insurance companies and the risk and unjust consumption of others' wealth involved in them.
Furthermore, if car owners insure their cars and know that the company will cover the damages, this encourages them to be careless and reckless in driving. This may lead to harm to people and their property, because if a driver knows that the company will bear the consequences of his negligence, he will be careless. This is different from if he knows that he himself will bear the consequences and is responsible, in which case he will be more cautious. Thus, these insurance companies cause recklessness and indifference among drivers.
Answer: This insurance is not permissible. Insuring a car in the manner you described, where you pay a sum of money and the company undertakes to repair your car if anything happens to it, whether the damage is minor or major, is not permissible because it involves gambling and risk, and it involves consuming wealth unjustly. Therefore, this insurance is not permissible.
It is obligatory for a person to place his reliance on Allah (Glorified and Exalted is He). If something happens to him by the decree of Allah (Glorified and Exalted is He), he should be patient and cover the expenses that result from it, and the damages that result from it, from his own wealth, not from the wealth of the insurance company.
Allah (Glorified and Exalted is He) is the One who provides sustenance and helps with such matters without a person having to resort to insurance companies and the risk and unjust consumption of others' wealth involved in them.
Furthermore, if car owners insure their cars and know that the company will cover the damages, this encourages them to be careless and reckless in driving. This may lead to harm to people and their property, because if a driver knows that the company will bear the consequences of his negligence, he will be careless. This is different from if he knows that he himself will bear the consequences and is responsible, in which case he will be more cautious. Thus, these insurance companies cause recklessness and indifference among drivers.