Best Islamic Car Insurance in 2024 (Find the Top 10 Companies Here!)
USAA, Progressive, and Erie are the top picks for the best Islamic car insurance, starting at just $70 monthly. Each company provides comprehensive Islamic car insurance, ensuring adherence to Islamic principles, and combining competitive rates with exceptional service and reliable coverage options.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
UPDATED: Jun 14, 2024
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Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jun 14, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
Company Facts
Full Coverage for Islamic Car
A.M. Best Rating
Complaint Level
Pros & Cons
Company Facts
Full Coverage for Islamic Car
A.M. Best Rating
Complaint Level
Pros & Cons
Company Facts
Full Coverage for Islamic Car
A.M. Best Rating
Complaint Level
Pros & Cons
The best Islamic car insurance providers are USAA, Progressive, and Erie, known for their commitment to meeting the needs of Muslim consumers.
These companies excel by offering policies that comply with Islamic principles, ensuring that clients receive both ethical and comprehensive coverage. Learn more in our “What is the best car insurance?”
Our Top 10 Company Picks: Best Islamic Car Insurance
Company Rank Multi-Vehicle Discount A.M. Best Best For Jump to Pros/Cons
#1 10% A++ Military Support USAA
#2 12% A+ Online Convenience Progressive
#3 10% A+ Personalized Service Erie
#4 20% B Local Agents State Farm
#5 25% A++ Competitive Rates Geico
#6 20% A Customized Policies Farmers
#7 8% A++ Trusted Coverage Travelers
#2 25% A Coverage Options Liberty Mutual
#9 25% A+ Nationwide Presence Allstate
#10 15% A Comprehensive Plans Safeco
By integrating principles like risk sharing and avoiding interest, these insurers provide a unique service that respects religious beliefs while offering robust protection. Customers seeking insurance that aligns with their faith will find these options both accommodating and competitive.
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#1 – USAA: Top Overall Pick
Pros
- Multi-Vehicle Discount: USAA offers a 10% discount for multi-vehicle policies. Unlock details in our USAA car insurance review.
- Highest Rating: USAA has an A++ rating from A.M. Best, indicating superior financial health.
- Tailored for Military: Specialized services and support tailored for military members and their families.
Cons
- Limited Eligibility: USAA services are only available to military members, veterans, and their families.
- Fewer Physical Locations: Fewer branches when compared to other major insurers, which might impact those preferring in-person service.
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#2 – Progressive: Best for Online Convenience
Pros
- Multi-Vehicle Discount: Progressive offers a 12% discount for multi-vehicle policies. Delve into our evaluation of Progressive car insurance review.
- High A.M. Best Rating: Progressive has an A+ rating, indicating excellent financial stability.
- Online Tools: Renowned for innovative online tools and mobile apps, enhancing user convenience.
Cons
- Customer Service Variability: Some customers may experience variability in service quality.
- Claim Resolution: There can be inconsistencies in claim resolution speed and satisfaction.
#3 – Erie: Best for Personalized Service
Pros
- Multi-Vehicle Discount: Erie provides a 10% discount for policies with multiple vehicles.
- High Personal Service: Known for personalized customer service and local agent networks.
- Flexible Policies: Offers flexibility in coverage that can be tailored to individual needs. Learn more in our Erie car insurance review.
Cons
- Limited Availability: Erie insurance is not available nationwide.
- Premium Costs: While offering personalized services, premiums can be higher than some national competitors.
#4 – State Farm: Best for Local Agents
Pros
- High Multi-Vehicle Discount: Offers a significant 20% discount for multi-vehicle policies.
- Wide Coverage: Extensive array of coverage options suited for various needs. Unlock details in our State Farm car insurance review.
- Agent Network: Strong presence of local agents providing personalized service.
Cons
- Higher Premiums: Despite discounts, premiums can be relatively higher.
- Limited Multi-Policy Discount: Multi-policy discounts are not as competitive as others.
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#5 – Geico: Best for Competitive Rates
Pros
- High Multi-Vehicle Discount: Geico offers a substantial 25% discount for multi-vehicle policies.
- Excellent Financial Strength: A++ rating from A.M. Best, ensuring reliable claim handling.
- Affordable Premiums: Known for competitive pricing across various coverage options. Discover more about offerings in our Geico car insurance review.
Cons
- Variable Customer Service: Customer satisfaction can vary depending on the region and case.
- Basic Coverage Options: While affordable, coverage options can be basic compared to others.
#6 – Farmers: Best for Customized Policies
Pros
- High Multi-Vehicle Discount: Farmers offers a 20% discount for multi-vehicle policies.
- Customization: Known for offering highly customizable policies to meet specific customer needs.
- Good Financial Rating: A rating from A.M. Best, indicates good financial health. Learn more in our Farmers car insurance review.
Cons
- Higher Cost: Customized options can lead to higher costs.
- Customer Service Issues: Some customers report variability in service quality.
#7 – Travelers: Best for Trusted Coverage
Pros
- Stable Financial Rating: A++ rating from A.M. Best, indicating superior financial strength.
- Legacy of Trust: Long-standing reputation for providing reliable insurance coverage. See more details on our Travelers car insurance review.
- Diverse Policy Options: Offers a broad range of policy options to cater to various needs.
Cons
- Lower Multi-Vehicle Discount: Only an 8% discount for multi-vehicle policies.
- Premium Costs: Premiums might be higher compared to some competitors.
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#8 – Liberty Mutual: Best for Coverage Options
Pros
- High Multi-Vehicle Discount: Liberty Mutual offers a 25% discount for multi-vehicle policies.
- Diverse Coverage Options: Wide variety of coverage options to suit different needs.
- Good Financial Strength: A rating from A.M. Best. Read up on the Liberty Mutual car insurance review for more information.
Cons
- Inconsistent Customer Service: Customer service quality can vary.
- Higher Premiums: These can be more expensive than some competitors for similar coverage.
#9 – Allstate: Best for Nationwide Presence
Pros
- High Multi-Vehicle Discount: Allstate provides a 25% discount for multi-vehicle policies.
- Wide Availability: Extensive national presence with agents and offices across the country.
- Variety of Discounts: Offers a range of discounts to reduce premiums. Discover more about offerings in our Allstate car insurance review.
Cons
- Variable Service Quality: Customer service experience can vary widely.
- Higher Premium Costs: Generally higher premiums in some regions.
#10 – Safeco: Best for Comprehensive Plans
Pros
- Good Multi-Vehicle Discount: Safeco offers a 15% discount for multi-vehicle policies.
- Comprehensive Offerings: Known for providing comprehensive coverage options.
- Flexible Policies: Offers flexibility in policy adjustments and coverage changes. Discover insights in our Safeco car insurance review.
Cons
- Premium Costs: This can be on the higher side compared to some national competitors.
- Limited Agent Network: Smaller agent network than some larger insurers.
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Specific Coverage Rates for Islamic Car Insurance
Buying Coverage
A person who is interested in arranging for Islamic car insurance should find a company that serves this specialty market. When one of these companies has been located, the customer can arrange for coverage in the same way as any other customer.
USAA consistently offers the lowest rates for both minimum and full Islamic car insurance coverage, demonstrating unparalleled value.
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He can ask for a quote for coverage, and the insurer would gather some information about the customer before providing pricing information. Unlock details in our guide titled “Car Insurance Calculator: Get Free Car Insurance Estimates Online.”
Once the customer makes a decision to buy a policy, he would pay a premium to the insurance company.
The amount payable is determined based on the customer’s level of risk and the likelihood that he or she would make a claim on the policy. The types of losses covered under the policy and the start and end dates for the coverage are listed in the policy language. Learn more by reading our guide on how to file a car insurance claim.
Funds Collected
The money paid in premiums is invested in activities that are permitted under Islamic law. No interest is earned on the money paid by policyholders. Muslims are not permitted to gamble, and the uncertainty associated with placing money in stocks or mutual funds is considered gambling.
The funds are managed by an agent who takes charge of marketing and administration functions. The agent is paid a fee for services rendered. If the fund is considered over-funded at any point, this amount is refunded to eligible policyholders in the form of a discount on their next year’s premium payments.
This amount is calculated in addition to any non-claim discounts they may be entitled to (For more information, read our “Car Insurance Discounts: Compare the Best Discounts”).
The structure of an Islamic car insurance plan is different from a standard one.
In a standard policy, the policyholder pays a premium and in return, the car insurance company assumes the risks associated with the policyholder suffering a loss. The way the contract is written, one of the parties will experience a loss, either the policyholder or the insurance provider. Either way, the contract has an element of uncertainty attached to it.
Under the Islamic car insurance system, any risk involved with the contract is shared equally by both parties. As a result, the undesired elements of uncertainty and gambling no longer apply to the contract. The amount of money contained in the fund that all policyholders contribute to compensate any of them for losses they may incur. Discover insights in our “How do you calculate total loss for car insurance?”
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Ethical Companies
All car insurance customers, whether they are Muslim or not, should carefully consider their options for car insurance. Delve into our evaluation of “Best Car Insurance by Driver Demographics.”
Keep these tips in mind:
- The company you choose for your car insurance needs should have been in business for several years and have a history of paying legitimate claims promptly.
- The insurance company should also have a substantial reserve at its disposal so that it can pay out on any claims made by its policyholders.
Before choosing any car insurance company, take the time to check out its financial rating with Standard & Poor’s or Moody’s to make sure that it is considered a healthy commercial enterprise.
Choosing a company with an A+ or A rating means that it can meet its financial obligations.
The Islamic car insurance system is based on principles of mutual trust and respect. The system has eliminated the element of risk between a policyholder and a car insurance company in a more traditional business relationship.
Enter your ZIP code to get online car insurance quotes for coverage. It’s quick, easy, and free.
Frequently Asked Questions
What is Islamic car insurance and how does it differ from typical car insurance?
Islamic or Sharia car insurance offers Muslims a way to secure vehicle coverage that respects their religious values. It removes the elements of uncertainty and gambling found in conventional car insurance policies. By structuring the agreement to equally distribute risk between the insurer and the insured, it ensures that the principle of certainty is maintained.
For additional details, explore our comprehensive resource titled “What is included in a standard car insurance policy?“
How do I buy Islamic car insurance?
To purchase Islamic insurance, you can approach companies that specialize in this type of coverage. The process of buying is similar to that of regular car insurance. You can request a quote, provide the necessary information, and make a decision based on the pricing and coverage options offered.
How are funds collected in Islamic car insurance?
The contributions made by policyholders towards their premiums are invested in activities that comply with Islamic law and do not accrue interest. An agent is responsible for managing these funds along with marketing and administrative duties.
When the fund accumulates excess money, policyholders who qualify are given a discount on their premiums for the following year, along with other non-claim related discounts, ensuring that is car insurance haram is addressed by adhering to Islamic principles.
By entering your ZIP code below, you can get instant car insurance quotes from top providers.
How can I identify ethical insurance companies for Islamic car insurance?
When selecting an insurance provider, it’s important to evaluate several factors to confirm if car insurance is halal or haram. Always verify the financial stability of the company by checking its ratings with respected agencies such as Standard & Poor’s or Moody’s. Choosing a company with high ratings, like A+ or A, is advisable as these ratings signify the company’s capability to fulfill its financial commitments.
Is Islamic car insurance available to everyone?
Islamic car insurance is tailored for Muslims who desire coverage that aligns with their religious principles. It’s crucial to recognize that the criteria for eligibility might differ between insurers. To understand whether is car insurance haram in Islam, individuals should consult with specific insurance providers to determine their coverage stipulations and if they offer services to non-Muslims as well.
To find out more, explore our guide titled “Finding Free Car Insurance Quotes Online.”
What is halal car insurance?
Halal car insurance offers coverage that complies with Islamic principles, avoiding Riba (interest) and excessive uncertainty.
How does Islamic car insurance work?
Islamic car insurance operates on the principle of Takaful, where risks are shared among policyholders, aligning with Shariah law.
What should I look for in Muslim car insurance?
Look for Muslim car insurance that excludes interest earnings, emphasizes risk sharing, and invests premiums in Sharia-compliant ventures.
Is car insurance Islam-compliant?
Car insurance in Islam is compliant when it operates on Takaful, avoiding gambling (Maisir) and interest (Riba).
To learn more, explore our comprehensive resource on “Compare Car Insurance by Coverage Type.”
What are the features of Islamic insurance car policies?
Islamic insurance car policies feature risk sharing, no interest, and investments in halal activities, aligning with Islamic ethics.
Can car insurance in Islam cover all types of vehicles?
Yes, car insurance in Islam can cover all types of vehicles, provided the policies adhere to Shariah principles.
Is car insurance halal?
Car insurance is considered halal if it operates under the Takaful system, which ensures compliance with Islamic laws.
What options are available for Islamic car insurance in the UK?
In the UK, several providers offer Islamic car insurance, featuring Shariah-compliant investments and risk-sharing models.
Learn more by reading our guide titled “Can you buy car insurance for UK drivers in the USA?“
Where can I find halal insurance in the USA?
Halal insurance in the USA can be found through providers specializing in Takaful-based products that respect Islamic principles.
How prevalent is Islamic car insurance in the USA?
Islamic car insurance in the USA is growing, with more insurers offering Takaful-based, Shariah-compliant policies.
What is an Islamic car covered by insurance?
An Islamic car is covered by insurance through policies that strictly adhere to Islamic financial ethics, avoiding interest and gambling.
How does Islam car insurance differ from conventional insurance?
Islam car insurance differs by avoiding Riba and Maisir, and by ensuring all operations and investments are Shariah-compliant.
Access comprehensive insights into our guide titled “How to Purchase the Right Car Insurance Quote Online.”
What should I consider when looking for halal car insurance in the UK?
When looking for halal car insurance in the UK, consider the provider’s compliance with Shariah law and their use of Takaful.
What defines ethical car insurance?
Ethical car insurance is defined by its adherence to fair practices, transparency, and consideration of environmental and social impacts.
Is Islamic insurance available across the USA?
Islamic insurance is available in several states across the USA, with companies offering Takaful-based products catering to the Muslim population.
Finding cheap car insurance quotes is easy. Just enter your ZIP code into our free comparison tool below to instantly compare quotes near you.
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Enter your ZIP code below to view companies that have cheap car insurance rates.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.