Question

Assalamalaykum brother I was wondering if you can give me some advice on something?
I bought a car and need to put insurance on it, if I pay monthly the yearly total comes upto £800 but if I pay it off fully in one go it’s about £650, is it haram/riba to pay monthly?
Also can I take out comprehensive insurance as this allows me to drive multiple vehicles

Answer

In normal circumstances it is unlawful to purchase insurance contracts. However, after purchasing a car one is not permitted to drive that car without insurance. Driving without insurance will result in prosecution. Hence, to over-come this challenge, contemporary scholars have permitted purchasing car insurance so that one is able to benefit from their purchase i.e. drive their car.

The general principle regarding necessities is that only minimal permissibility is granted; enough to over come the need. Hence, in this case also, the minimum contract required to allow you to drive will be permitted. If it is within your capacity to pay yearly at a reduced cost then you must do this. As for comprehensive car insurance verses third party it would depend which one is cheaper. At times comprehensive insurance is quoted at a cheaper price than third party. If one opts for the more expensive cover then they are paying more than is needed to acquire their right to drive their car and thus this additional payment will be unlawful for them.

See: Contemporary Fatawa P.123

الأشباه والنظائر لابن نجيم (ص: 73)
الثَّانِيَةُ: مَا أُبِيحَ لِلضَّرُورَةِ يُقَدَّرُ بِقَدْرِهَا
وَلِذَا قَالَ فِي أَيْمَانِ الظَّهِيرِيَّةِ: إنَّ الْيَمِينَ الْكَاذِبَةَ لَا تُبَاحُ لِلضَّرُورَةِ وَإِنَّمَا يُبَاحُ التَّعْرِيضُ، (انْتَهَى) يَعْنِي؛ لِانْدِفَاعِهَا بِالتَّعْرِيضِ
وَمِنْ فُرُوعِهِ: الْمُضْطَرُّ لَا يَأْكُلُ مِنْ الْمَيْتَةِ إلَّا قَدْرَ سَدِّ الرَّمَقِ

Answered by:
Ifta Research Fellow

Checked & Approved by:
Mufti Abdul Rahman Mangera
Mufti Zubair Patel