My question is regarding car insurance. In Canada you can’t drive a car without car insurance so I wanted to ask about the permissibility of that.
Bismillahi Ta’ala
Walaikum Assalam Warahmatullah
If the insurance is mandatory by law, as is the case in Car Insurance in Canada, then one may take out such an insurance that will have the least impression of riba in it. In our case, it would be the lowest amount of premiums being paid.
If someone finds a comprehensive full insurance with lesser premiums than a third-party insurance, then they may opt for it. But generally, a third-party insurance would be the cheapest. In this too, one should reduce the impression of interest to as little and bare-minimum as possible. After all, our reliance is on Allah, and not the insurance.
If and when one has to call upon benefits from the insurance, then only the monies one has paid in premiums may be utilized. Any access money will be considered riba’.
Wallahu A’lam
And Allah Ta’āla Knows Best
Mufti Faisal al-Mahmudi