Question: In short, my modest livelihood is from good and food deliveries. Therefore I use scooter as a mean of work transport. You may know using motor vehicle without insurance is criminal offence in the United Kingdom and could result a major problem being as resident. I also support the family and bear my expanses. My mother is a single parent. Firstly I need to insure the vehicle and the payment would be in monthly instalments the company charge APR on instalments if paid by monthly and I’m not in position to pay in the full amount. I need the advice for this matter.

Answer: APR (Annual Percentage Rate) on instalments is a form of interest charged annually rather than just a monthly fee/rate, hence this is not an administrative charge either.  This charge is applied on a loan, mortgage loan, credit card, etc. Therefore, it is Haram to take interest based instalments plan whether this is to do with a insurance policy or other products as mentioned above.  

Our suggestion is that you borrow the whole amount from any close family members, friends etc and pay in one go to avoid the interest and you can pay back slowly to your borrower(s).

If for any reason, you cannot manage to get the whole amount then last resort will be to do it by instalments as alternative. However, best is to avoid interest in any form. 

wallahu a’lam. 

Reference: Surah Al-Baqarah: 275