An Islamic car insurance or car Takaful is by definition a cover that mitigates financial harms as a result of accidents causing damage to the vehicle and individuals and which follows the principles of Islamic finance as part of Islamic Sharia law.
The Islamic car insurance follows the objectives of a conventional vehicle insurance coverage, however by applying rules based on sharia-compliant cover or Takaful and being an ethical financial transaction.
WHAT TYPES OF ISLAMIC CAR INSURANCES ?
A car Takaful which is equivalent to a halal car insurance offers to Muslim car drivers several cover options:
An Islamic car insurance or vehicle Takaful auto consists of a cover that covers against many risks and obeys Islamic principles according to which the premiums of Islamic policyholders are invested in financial products following strict financial laws of Sharia.
The Islamic car insurance is preconditioned that the car has not been financed by applying interest (Riba) but also that the vehicle is not used for activities contrary to the values of Islam (transport of alcohol for example).
WHAT IS THE DIFFERENCE BETWEEN A SHARIA CAR INSURANCE AND A CONVENTIONAL VEHICLE INSURANCE?
A Sharia car insurance is different from a conventional car cover policy so far as the Muslim policyholders share the risks an profits by paying the premium into a Sharia compliant investment fund.
The car Takaful differentiates itself from the normal cover as any surplus of cash (paid premiums minus claims) is allocated as a discount to the policyholders during the following premium payment year.
In the United States (USA) and United Kingdom (UK), Islamic car insurance is possible as it is meanwhile offered by American and British Halal insurer who cover Muslim drivers by applying Sharia law.
HALAL MORTGAGE TAKAFUL INSURANCE STUDENT INSURANCE CAR INSURANCE HOME INSURANCE REAL ESTATE INSURANCE LIFE INSURANCE BUSINESS INSURANCE TRAVEL INSURANCE HAJJ UMRAH INSURANCE FUNERAL INSURANCE MOSQUE INSURANCE AUSTRALIA INSURANCE GERMANY INSURANCE ISLAMIC CAR LOAN ISLAMIC MICROFINANCE WITHOUT INTEREST BUSINESS LOAN FOR WOMEN TAKAFUL MORTGAGE LOAN WITH POOR CREDIT ISLAMIC DEBT CONSOLIDATION DISABILITY LOAN STUDENT LOAN ISLAMIC LEASING LETTER OF CREDIT PERSONAL LOAN FOR STARTUP PRIVATE LOAN CROWDFUNDING CALCULATOR FOR WEDDING FOR EXPATRIATE ISLAMIC INSURANCE INDIA TAKAFUL ISLAMIC HEALTH INSURANCE USA TAKAFUL CANADA TAKAFUL UK TAKAFUL FARMER LOAN CORONOVIRUS LOAN TAXI LOAN RAMADAN LOAN LIST OF ISLAMIC BANKS ALBANIA ALGERIA AUSTRALIA BAHRAIN BANGLADESH BOSNIA-HERZEGOVINA BRUNEI CANADA CHINA DENMARK DJIBOUTI EGYPT ETHIOPA FRANCE INDONESIA IRAN IRAQ IVORY COAST JORDAN KAZAKHSTAN KENYA KUWAIT KYRGYZSTAN LEBANON LIBYA LUXEMBOURG MALAYSIA MALI MAURITANIA MOROCCO NETHERLANDS NIGERIA NORWAY OMAN PAKISTAN PALESTINE PHILIPPINES QATAR RUSSIA SAUDI-ARABIA SENEGAL SINGAPORE SRI-LANKA SUDAN SWITZERLAND SYRIA TAJIKISTAN TANZANIA THAILAND TUNISIA TURKEY U.A.E UNITED-KINGDOM U.S.A UZBEKISTAN YEMEN AZERBAIJAN INDIA BELGIUM GERMANY IRELAND ITALY NEW-ZEALAND SPAIN SWEDEN BULGARIA KOSOVO SOUTH-AFRICA LONDON