Artificial Intelligence (AI) is fundamentally reshaping the landscape of automotive engineering, particularly in passenger vehicles where comfort, safety, and customization are paramount. This paper presents a comprehensive review of current and emerging AI-driven applications in passenger cars, including intelligent vehicle insurance, real-time traffic optimization, personalized driving experiences, emotion recognition, and advanced EV battery management. The integration of AI technologies—ranging from machine learning and computer vision to natural language processing and deep neural networks—enables predictive maintenance, adaptive driver-assist systems, and next-generation human-machine interfaces. AI’s role in vehicle insurance is also explored through behaviour-based risk scoring and claims automation. Furthermore, emotion-aware cabin systems are discussed, which aim to detect driver fatigue, stress, or distraction to improve road safety and mental wellness. The paper also