Extended Warranty

· 19 Jumada II 1447 AH1 min readEnglish
Transaction And Trade

Question

Are we allowed to take out an extended warranty on a vehicle when the current warranty is expiring?

Answer

Purchasing an extended warranty for one’s appliances or vehicle is tantamount to purchasing insurance, which is Haraam. The elements of gambling and Riba (interest) are found in purchasing extended warranties and in insurance, hence it is prohibited. We therefore advise abstention.

Yes, if the extended warranty was included in the sale price when purchasing a new product, and it was not your request for it to be included in the sale price, but rather it was included by the store and sold as one package with the new item, then benefitting from such an extended warranty will be permitted.

In the queried scenario, one will be purchasing an extended warranty separately after one’s extended warranty expires; hence, it will not be permissible to purchase such a warranty.

References (Arabic / Urdu sources)

يَا أَيُّهَا الَّذِينَ آمَنُواْ إِنَّمَا الْخَمْرُ وَالْمَيْسِرُ وَالأَنصَابُ وَالأَزْلاَمُ رِجْسٌ مِّنْ عَمَلِ الشَّيْطَانِ فَاجْتَنِبُوهُ لَعَلَّكُمْ تُفْلِحُونَ (المائدة: 90)

نَهَى النَّبِيِّ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ عَنْ بَيْعِ الْغَرَرِ وَالْغَرَرُ مَا يَكُونُ مَسْتُورَ الْعَاقِبَةِ (المبسوط للسرخسي 68/13)

انشورنس سود اور قمار پر مشتمل ہونے کی بنا پر بالکل حرام ہے (فتاؤى عثماني 3/314)

Answered by
Mufti Abdul Kader Fazlani
Checked & approved by
Mufti Yacoob Vally Saheb
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