Car insurance : paying car insurance by monthly installments

Fatawa Question

Assalamu Alaykum Wa Rahmatullahi Wa Barakatuh, I am shopping around for my car's insurance (which is required by law) and wanted to ask if paying it by monthly installments (resulting in a higher amount) rather than at one go would be legal in Islamic Sharia. Visitor notes : when I am paying by monthly installment, I pay more than my quoted premium (about 20 % more). So though I am not exactly borrowing money on interest per se, interest is involved here nevertheless... ? In my current financial situation it is difficult for me to pay the whole amount at once. Jazakum Allahu Khairan for your constant help

Fatwa

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Publication Date

2006-11-30

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-788439

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