Q: Is it permissible to engage the services of an individual or a security company that extends a commitment to safeguard my vehicle, with assurances of either replacement or compensation equivalent to its value in the event of damage or destruction?
A: If one pays an individual or a company a certain amount (whether he pays a once off payment or he pays monthly premiums, etc) for them to assure him that in the case of damage or destruction, they will either replace his vehicle or compensate him the value of the vehicle, then this is not permissible in shariah. This is regarded as insurance and insurance is haraam on account of the elements of interest (riba) and gambling being found in it.
And Allah Ta'ala (الله تعالى) knows best.
Answered by:
Checked & Approved: