Private Insurance

What Does Private Insurance Mean?

Private insurance is insurance provided by private companies, as opposed to government entities, and serves as an alternative to public insurance.

Regardless of whether a person chooses private or public insurance, the goal is typically the same: to obtain financial protection against various risks.

Insuranceopedia Explains Private Insurance

A wide range of private insurance companies offer private insurance. To obtain private insurance, individuals typically pay premiums, with higher coverage usually resulting in higher premium costs. What you pay also depends a lot on which type of policy you are buying. Someone shopping for life coverage, for example, can compare the different types of life insurance to see how term and whole life policies stack up on cost.

Private insurers provide coverage for health, life, auto, property, business, and other types of risk. On the auto side, private insurers offer several types of car insurance that buyers usually mix and match based on what their car is worth and what their state requires. Additionally, there are public insurance options available for many of these risks. Eligibility for public insurance often depends on a person’s income level.