In The Name of Allaah, The Most Merciful, The Bestower of Mercy.
This questioner is asking about the ruling on insurance in Islam and its forms.
Answer: Insurance is a contract based on uncertainty (speculation or ambiguity), and every contract that contains uncertainty is false due to the hadith reported by Abu Hurairah [may Allaah be pleased with him] that the Prophet [peace and blessings of Allaah be upon him] forbade [بيع الغرر – a transaction based on uncertainty, speculation or ambiguity] because indeed الغرر is from gambling. Allaah [The Exalted] forbade it – in His Book (i.e. The Qur’aan)- saying: [يا أيها الذين آمنوا إنما الخمر و الميسر والأنصاب والأزلام رجس من عمل الشيطان فاجتنبوه لعلكم تفلحون – O you who believe! Intoxicants (all kinds of alcoholic drinks), gambling, Al-Ansab , and Al-Azlam (arrows for seeking luck or decision) are an abomination of Shaitan‘s (Satan) handiwork. So avoid (strictly all) that (abomination) in order that you may be successful]. [Surah Al-Maa’idah. Aayah 90]
The reason being that it is gambling is that the insured pays the insurance payment, lets say (for example) 5000 in a year; then an accident may occur and he receives two or three times more than he paid. An accident may not occur at all, or may occur and he receives lesser than what he paid. In reality, it is a contract of uncertainty and risk, and it is not permissible. The believer must fear Allaah [The Mighty and Majestic] and stay away from these misguided minds initiated by the capitalists in order to take people’s wealth in an unlawful way (i.e. a way declared forbidden by the Creator).
As for car insurance, listen on this link by Shaikh Abu Khadeejah [may Allaah preserve him]: https://video.link/w/I2knWC1TqWM#