Common Carrier

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An insurance company either protects a particular risk or transports people or goods covered by an insurance policy for a fee. Whereas a private carrier transports only its owner’s goods, a common carrier is available to the public to transport any goods.

Most leading insurance companies are common carriers within their coverage category and cover similar types of risk. For example, auto insurers like Geico and Progressive offer coverage for non-standard, high-risk drivers. In contrast, State Farm and Allstate tend to cover lower-risk, standard-type drivers with better driving records.

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