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A obligatory out-of-pocket expense required by an insurance policy before an insurer can pay a declare known as a deductible . The insurer might hedge its own danger by taking out reinsurance, whereby another insurance company agrees to carry some of the dangers, particularly if the first insurer deems the danger too massive for it to hold. Car insurance may help shield you from prices associated to auto accidents and other types of losses, such because the theft of your car. Your automotive insurance policy is a contract for which you pay a specific amount or — "premium" — to your insurance firm in trade for the coverages you choose. 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