Most scholars and fiqh councils hold that conventional commercial insurance is not permitted, because it combines uncertainty (gharar) with elements of riba and gambling. They allow cooperative insurance (takaful), where members donate to a shared fund to help each other (5:2). A few scholars permit commercial insurance. Where the law makes it compulsory, such as car insurance, scholars treat it as a case of need.
Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.
O you who have believed, do not violate the rites of Allah or [the sanctity of] the sacred month or [neglect the marking of] the sacrificial animals and garlanding [them] or [violate the safety of] those coming to the Sacred House seeking bounty from their Lord and [His] approval. But when you come out of ihram, then [you may] hunt. And do not let the hatred of a people for having obstructed you from al-Masjid al-Haram lead you to transgress. And cooperate in righteousness and piety, but do not cooperate in sin and aggression. And fear Allah; indeed, Allah is severe in penalty.
This is general information, not a fatwa. For your own situation, ask a qualified scholar.
Questions about halal and haram
Is commercial insurance permitted?
Most scholars and fiqh councils hold that conventional commercial insurance is not permitted, because it combines uncertainty (gharar) with elements of riba and gambling. They allow cooperative insurance (takaful), where members donate to a shared fund to help each other (5:2). A few scholars permit commercial insurance. Where the law makes it compulsory, such as car insurance, scholars treat it as a case of need.
