Leasing a car and applying for full coverage insurance

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

In general, car insurance is impermissible. However, it has been permitted in 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’ah, 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 scholars, although some ‘ulama have issued the fatwa of permissibility for full coverage in certain scenarios. However, in cases where one is not leasing (and is not required to have full coverage), it would be best for them to suffice with the minimal insurance required.

والله اعلم

Allah subhanahu wa ta’ala knows best.

Ahad Yousuf Ahmed

Approved by Mufti Husain Ahmad Madani