Fatwaa ID: 1483

Question:
Assalamu aalykum ww
If a person wants car insurance, do we have to go for the cheapest one? Or can they go for comprehensive insurance one? Even though third party is cheaper?

Answer:
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

In principle, conventional car insurance is haraam due to the many prohibited elements found therein. If one is required by law or due to genuine need to take out an insurance policy, then one will be excused to take out the minimum required. In most cases, this minimum is the third party liability insurance. It will not be permissible to pay even a few cents extra if that is not required. Likewise, it will not be permissible to go for a comprehensive insurance policy.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York
https://askthemufti.us/

12/28/1444 AH – 07/16/2023 CE | AML1-8051

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

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