Leasing a car and applying for full coverage insurance

Question:

Assalamualikum, is it allowed to lease a car, because in order to lease one must have full insurance, is this allowed?

2- because of insurance the normal cost to make any repairs is very high.  Is it allowed to get full insurance on cars, as it can be very difficult to pay for damages because of the high cost that insurance has forced in the average market?

بسم الله الرحمن الرحيم

الجواب حامدا ومصليا ومسلما

Answer:

Wa Alaikum Salam 
Car insurance would only be permitted under extreme cases of necessity. For example, if a person is legally obliged to have insurance or there is no other way of obtaining what is deemed his/her right in Shari'a, then the majority of scholars have allowed car insurance policies. However the permissibility would be restricted to the least amount of coverage that fulfills the purpose. As this ruling is based on need, any type of coverage exceeding the minimal amount that fulfills the need has been deemed impermissible by the majority of the scholars. Although some have issued the fatwa of permissibility for full coverage in certain scenarios with stringent conditions. It would be  recommended that alternative avenues are adopted when purchasing a vehicle instead of leasing.

والله اعلم

Allah subhanahu wa ta'ala knows best.

Ahad Yousuf Ahmed

Approved by Mufti Husain Ahmad Madani