Sharia insurance is a relatively new offering on the insurance market. The idea is that Muslim drivers should not have to pay insurance to companies that do not abide by Sharia law, much in the same way that the Co-op only invests ethically.
A summary of Sharia car insurance is as follows:
- Sharia law prohibits interest charges, so these would not be included in these insurance products
- Shared risk - any surplus of a policy is returned to the consumer in the form of a discount on the next renewal
- Money is invested ethically; no money is invested in businesses against Sharia law such as casinos or pornography