Are Extended Warranties Permissible?

Question: I recently got a laptop and I read online that purchasing an extended warranty at the same time at an additional cost is permissible because that extended service comes as a gift or servicing cost. After this, I got an extended warranty with a laptop, but I noticed that the warranty provided is not by the same company that provides the initial warranty that is a company of laptop like Dell, Apple, etc. (not the extended one). The extended warranty is by a third party.  Is this permissible?

Answer:

Wa ‘alaykum assalam wa rahmatullah wa barakatuh,

I pray you are well.

Extended Warranties Are Permissible

Yes, purchasing such extended warranties are permissible if purchased at the time of the sale. The fact that the provider is another company does not affect the validity of the contract. The seller can be seen as a representative of the company who will provide the service to you (Usmani, Fiqh al Buyu’).

Please consider taking our course on Money Matters. It will provide a lot of guidance on money and the principles of Islamic Finance.

May Allah grant you the best of both worlds.

[Shaykh] Abdul-Rahim

 

Checked and Approved by Shaykh Faraz Rabbani

Shaykh Abdul-Rahim Reasat began his studies in Arabic Grammar and Morphology in 2005. After graduating with a degree in English and History he moved to Damascus in 2007 where, for 18 months, he studied with many erudite scholars. In late 2008 he moved to Amman, Jordan, where he continued his studies for the next six years in Sacred Law (fiqh), legal theory (Usul al-fiqh), theology, hadith methodology, hadith commentary, and Logic. He was also given licenses of mastery in the science of Quranic recital and he was able to study an extensive curriculum of Quranic sciences, tafsir, Arabic grammar, and Arabic eloquence.