Shaikh Ibn Uthaymeen rahimahuallah said:
“If a speaker says, ‘if I am tested by this affair and I live in a land or I am in a land which I am forced to take this insurance. So what do I do? Do I not drive my car and hire a car or what do I do?” I say: in this situation, if you are forced to take car insurance, then there is no harm to pay what you are forced. However, if an accident occurs, then do not take from them [i.e. the car insurance company] except the amount you paid. Do not take money from them for this accident if it is more than what you took. So like this, you exit from liability because you are oppressed into this prohibited contract which is forcing you to pay this money. So if you are oppressed, then you take in accordance to the level you are oppressed, and it is by their choice because they are the ones paying you. This is the requirement of the contract which you are forced into. So I do not see any harm in taking from them in accordance to what you paid only in occurrence of this accident which has happened to you. So if the accident is worth less than what you gave, then they would not give you except in accordance to the accident. No doubt, you take this”.
[Noor ‘ala Darb no.196]
Shaikh Al-Albani rahimahullah said:
“If a believer is forced by the government to pay insurance for his car, then he gets into a crash, (and) then the insurance company, based on the agreement, wants to give a compensation for his loss, then we say here: if what he paid him is equal to what they will give him or more, then that is for him.”
[Silsilatul-Huda wan-Nur no. 420]
Faisal Ibn Abdul Qaadir Ibn Hassan