Car Insurance is very common in today’s world. Everyone is getting Car Insurance policies but being a Muslim our first concern is whether Car Insurance is Haram or Halal? So this blog is the perfect answer to your question.

Islam is a pure religion. Islam prohibits all those activities which are based on interest. Islam said we can trade but in that case, we can not take the interest. Trade must be interest-free. But nowadays we can see that insurance industry grow and expand firmly. Most insurance companies are conventional. Means that they work on interest base projects. And everyone is attaining different life and general insurance policies to secure their wealth and life.

Motor insurance is one of the most common and mostly selling insurance policy because almost majority of people have their own vehicles or maybe they use government vehicles, so then the question arises that:

Is car insurance halal or haram according to Islamic perspectives?

So we can simply answer this question by explaining what actually insurance is.

Insurance means to security risk and uncertainties are risks. When our car will get accident insurance company will indemnify the insured.

Islam said Allah is a protector of everything. Then why people need to ensure their asset with insurance companies. Simply speaking insurance companies work on interest. They provide interest benefits to the insured and Islam is against the interest. Then how can a car or any type of insurance be halal?

But now we know that It is a rule of Government around the world that you must have to purchase the motor insurance policy either you want or not. Then what Muslims should do to be in halal business.

Fortunately, now there are many non-conventional insurance companies just like non-conventional banks or you can say Islamic banks. These insurance companies work on shariah rules.

Means they work for both profit and loss sharing. So if necessary to get insurance policies then we should concern with that insurance companies. In that case, there is no harm or haram thing In car insurance policy.

But if you get insured with the company which works on interest then obviously your insurance policy will be haram. So stay safe and stay away from interest base system or business. May Allah protect all of us with all haram things and activities.