Is Car Insurance Allowed in Islam? Read This!

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Hi all readers! Are you looking for an explanation about “is car insurance allowed in Islam?”? If your answer is “Yes”, congratulations! Now you are reading the right article. Why? Because that is what I will explain in this article. As Muslims, we must understand that. That’s why I wrote this article. So, you should read it to the end!

Specifically, there are three important points about “is car insurance allowed in Islam?” which I will explain in this article. The three important things I mean are as follows:

  1. Why Is Discussion About Car Insurance in Islam Important?
  2. Is Car Insurance Allowed in Islam?
  3. Can I Buy Car Insurance in Islam?

Why Is Discussion About Car Insurance in Islam Important?

The first important thing about “is car insurance allowed in Islam?” What I will explain now is “why is discussion about car insurance in Islam important?”. I want you to understand that first before you read more explanations in this article so that you understand the urgency of this discussion.

Car insurance is one of the new discussions in Islam. The point is that there is no discussion of car insurance in classical Islamic literature. That is one of the reasons for the difference of opinion among experts in Islamic law regarding the legality of car insurance for Muslims.

Car insurance is an agreement between the customer and the insurance company. In the agreement, the car insurance company is willing to bear a sum of money for losses due to something in the future after the customer agrees to pay the money.

There is a difference of opinion among Islamic jurists regarding the legality of car insurance. Some Islamic legal experts say that car insurance is halal insurance if it is managed according to Islamic principles. But some other Islamic law experts say that there is no halal car insurance in Islam. In other words, this second opinion says that car insurance in Islam is conventional car insurance.

Now, if you ask me, “why is discussion about car insurance in Islam important?”, the answer is as follows:

One: Muslims must ensure that all things related to them are halal, their food must be halal food, their clothes must be halal clothing, their cars must be halal cars, their health must be halal health.

Two: there are differences of opinion about the legality of car insurance in Islam as I explained earlier.

Three: Muslims who want to buy car insurance, must understand all things related to car insurance so that they get halal car insurance.

Those are the three main reasons why the discussion of car insurance in Islam is important. If Muslims want to buy car insurance, then they have to make sure that the car insurance is halal car insurance. They must ensure that the car insurance funds they provide to car insurance companies are managed according to Islamic principles and do not violate Islamic rules. That is the main reason why they should cover all aspects of car insurance.

That’s a brief explanation of “why is discussion about car insurance in Islam important?”. As Muslims, we must understand that.

Is Car Insurance Allowed in Islam?

The second important point about “is car insurance allowed in Islam?” what I’m going to explain now is a specific answer. I want you to understand that because that is the main discussion in this article.

Before I explain the answer to the question, “is car insurance allowed in Islam?”, firstly, I want to explain the difference between car insurance in Islam and conventional car insurance. Why? Because that’s what causes differences of opinion among Islamic legal experts about the legality of car insurance in Islam.

In general, if we read some literature about car insurance in Islam and conventional car insurance, then we will find an explanation that the difference is the concept of managing car insurance funds.

The concept of car insurance in Islam and the management of car insurance funds in Islam according to Islamic rules. The point is that it must not violate the rules of Islam. Car insurance in Islam forbids fraud, coercion, managing illicit funds, and so on. The point is that Islamic principles and Islamic rules become the standard for managing car insurance.

In car insurance in Islam, risk coverage is between the insurance company and the insurance participants (risk sharing). Participants help each other and help each other. Fundraising is managed by sharing the risk with the insurance company and participants.

The concept of conventional car insurance and the management of conventional car insurance funds do not make Islamic principles and Islamic rules the standard for managing car insurance.

In conventional car insurance, the transfer of risk from the participant to the company is full (risk transfer). In full, the insurance will bear the risk on behalf of the insured, according to the agreement.

Now, if you ask me, “is car insurance allowed in Islam?” The answer is that car insurance is permissible in Islam if the concept of managing car insurance and car insurance funds is according to Islamic principles and Islamic rules. But if the management is not according to Islamic principles and Islamic rules, car insurance is not allowed in Islam.

That’s a brief explanation of “is car insurance allowed in Islam?”. As Muslims, we must understand that.

Read Also:

Concept of Takaful (Islamic Insurance)

Can I Buy Car Insurance in Islam?

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Founder, Author, Indonesian Blogger, Muslim, Graduate of Al-Azhar University, Cairo, Egypt.

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