Definition - What does Private Insurance mean?
Private insurance is insurance that is offered by private companies as opposed to government entities. It is an alternative to public insurance.
Whether a person obtains private or public insurance, their goals are usually the same: to receive financial protection for various types of risk.
Insuranceopedia explains Private Insurance
There is a wide range of private insurance companies who offer private insurance. In order to obtain private insurance, a person generally has to pay premiums. The more coverage that a person wants, generally, the more expensive the premiums are.
There are private insurers who provide coverage for health, life, auto, property, business, and other types of risk. There are also a number of public insurance options for many of these risks as well. Whether or not a person qualifies for public insurance often depends on their income level.