Private insurance is a type of coverage provided by non-governmental companies. Individuals or businesses pay premiums to these companies in exchange for financial protection against specific risks, such as health issues, accidents, or property damage. The terms of coverage, including what is included and excluded, are outlined in a policy. Unlike public insurance programs, which are funded by the government, private insurance relies on the premiums collected from policyholders. This system allows for a variety of plans and options, enabling consumers to choose coverage that best fits their needs and budget. Examples of private insurance include health insurance, auto insurance, and homeowners insurance.