Is Emergency Roadside Service Coverage Permissible?
Hanafi Fiqh
Answered by Shaykh Umer Mian
Question: As Salam Alaykum,
Is it permissible to purchase emergency roadside service coverage subscriptions?
These require a customer to pay a fixed amount per year as part of a yearly membership/subscription. In return, the company provides emergency roadside assistance.
Answer: Wa alaikum as-salam wa rahmatullahi wa barakatuhu.
Subscription to an emergency roadside assistance plan is not similar to insurance contracts. The former is a valid and permissible service contract, while the latter represents a form of riba (interest) and qimar (chancing). For more details, please see this answer by Shaykh Muhammad ibn Adam al-Kawthari.
Wassalam,
Umer Mian
