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What is Islam’s ruling on a Muslim selling a car that he bought at a low price from a non-Muslim, and then the non-Muslim reports it stolen to receive insurance compensation, thereby obtaining money from the Muslim and the insurance compensation?

1 min readAlso available in العربية

This transaction is forbidden because it involves deceit, fraud, and lying on the part of the car owner, and the buyer's acknowledgment of it and assistance in it. The fact that the car owner is a disbeliever does not permit a Muslim to engage in this transaction with him or assist him in consuming people's wealth unjustly, due to the Almighty's saying: (And do not cooperate in sin and aggression).

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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