Personal auto insurance (also sometimes known as private car insurance) is a form of insurance policy that offers financial coverage to the owners of cars that are used personally (non-commercially).

Here’s a clear breakdown:

 What it covers

 The car insurance usually provided by the company includes in the private cars:

Own Damage (OD):

 Repairs or replacement in case your car is damaged in an accident, in fire, theft, vandalism, or a natural calamity.

Third-Party Liability:

• An injury, death, or damage of property compensation that is caused to another individual by your car. 
• In most countries, this coverage is normally mandatory.

Personal Accident Cover:

 Benefits that compensate the owner-driver in the instance of injuries or death when driving the insured vehicle.

Optional Add-ons:

•  Zero depreciation cover
•  Roadside assistance
•  Engine protection 
• No Claim Bonus (NCB) insurance.

 Who it’s for

 The insurance of a personal, family, or social use of a vehicle is the use of a car privately, not in the context of business, delivery, or escort service (it is commercial vehicle insurance).

 How it works

1. You get a premium (typically annually).
2. In case of any accident or loss, you claim.
3. The insurer will pay up to your policy terms and less a deductible you had agreed upon.

Legal requirement

In the majority of states (U.S, U.K., India, Canada, etc.), third-party insurance or at least mandatory is required to drive on the public roads.