coinsurance

Definitions (2)

1. An insurance policy provision under which the insurer and the insured share costs incurred after the deductible is met, according to a specific formula.
2. More generally, a sharing of risk between the insurer and the insured. also called copay.

Use coinsurance in a sentence

You should consider taking on some coinsurance if you think you need to limit your exposure at that time and place.

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There is a small price for coinsurance each time I have a doctor's checkup, which is much less than the original price of the healthcare visit.

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Insurance creates moral hazard, i.e. the insured may undertake risky actions knowing that somebody else is paying, but this can be reduced by a coinsurance arrangement whereby the insured is penalized financially for this behavior, resulting in a lower premium.

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