The Ruling on Insuring Cars

Question :

A questioner is asking about the ruling on insuring cars, since the daily car rental agencies in airports insure their cars. So if a person rented a car from them, he would pay approximately thirty Riyals as insurance on the car, so that, if the car was involved in an accident, the company will bear the cost of the repair, if it was the fault of the one who rented the car. Advise us, and may Allah reward you with goodness.

Answer:

Insurance is, in my opinion, harmful, because the company might take sums of money from the insured every year without doing anything for them, and they might not require it (the money) for repairs or anything else. They might take only small sums of money from others and lose large amounts on it. There are some car owners who have little faith and fear of Allah, Most High. So when one of them insures his car, he does not care what happens, so he exposes himself to risks and drives carelessly, which results in accidents and believing people are killed and property which should be respected is destroyed - but that does not bother him, because he knows that the company will bear the responsibility for the result of his actions. So I say that this insurance is not permissible under any circumstances for these reasons and others, whether upon cars, lives, properties or other things.

Source:
Ibn Jibreen
Fatawa Islamiyah, Vol. 5 Pages 19-20

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