coinsurance: meaning, definition, pronunciation and examples
C2Formal/Technical
Quick answer
What does “coinsurance” mean?
A type of insurance policy in which the insured party shares the costs of a claim with the insurer, typically paying a percentage of the loss.
Audio
Pronunciation
Definition
Meaning and Definition
A type of insurance policy in which the insured party shares the costs of a claim with the insurer, typically paying a percentage of the loss.
A risk-sharing agreement in property or health insurance, where the policyholder agrees to pay for a portion (e.g., 20%) of any insured loss. Also refers to joint insurance taken out by two or more insurers on the same risk.
Dialectal Variation
British vs American Usage
Differences
The term is spelled and used identically in both varieties. The concept is more frequently encountered in US health insurance contexts.
Connotations
Neutral technical term. In everyday US English, it often carries a negative connotation of unexpected out-of-pocket expenses.
Frequency
Higher frequency in American English due to the structure of the US healthcare system.
Grammar
How to Use “coinsurance” in a Sentence
[policy] has a [percentage] coinsurance[insured] is subject to coinsurancecoinsurance of [percentage]coinsurance applies after the deductibleVocabulary
Collocations
Examples
Examples of “coinsurance” in a Sentence
adjective
British English
- The coinsurance provision was clearly stated in the schedule.
American English
- We reviewed the coinsurance clause in the new health plan.
Usage
Meaning in Context
Business
The commercial property policy includes an 80% coinsurance clause to ensure adequate coverage.
Academic
The study analyzed the impact of coinsurance rates on healthcare utilization patterns.
Everyday
My health plan has a 20% coinsurance, so I paid $200 for the $1000 MRI.
Technical
Failure to meet the coinsurance requirement at the time of loss triggers a penalty under the pro rata condition.
Vocabulary
Synonyms of “coinsurance”
Strong
Neutral
Weak
Vocabulary
Antonyms of “coinsurance”
Watch out
Common Mistakes When Using “coinsurance”
- Confusing 'coinsurance' with 'deductible' (deductible is paid first, then coinsurance applies).
- Misspelling as 'co-insurance' (hyphenated form is less standard).
- Using it as a verb (e.g., 'The policy coinsurances me' - incorrect).
FAQ
Frequently Asked Questions
No. A copay is a fixed amount (e.g., $30 per doctor visit). Coinsurance is a percentage of the cost (e.g., 20% of a hospital bill).
You may face a coinsurance penalty, reducing the amount the insurer will pay for a claim proportionally to your underinsurance.
Yes, in health insurance, there is usually an out-of-pocket maximum. Once you reach it through deductibles, copays, and coinsurance, the insurer pays 100%.
It is most prevalent in health insurance and commercial property insurance. It is less common in auto or life insurance.
A type of insurance policy in which the insured party shares the costs of a claim with the insurer, typically paying a percentage of the loss.
Coinsurance is usually formal/technical in register.
Coinsurance: in British English it is pronounced /ˌkəʊɪnˈʃʊərəns/, and in American English it is pronounced /ˌkoʊɪnˈʃʊrəns/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “[No common idioms]”
Learning
Memory Aids
Mnemonic
Think: COst + INSURANCE = COINSURANCE. You CO-pay a portion of the INSURANCE claim.
Conceptual Metaphor
INSURANCE IS A PARTNERSHIP (where both the insurer and insured share the financial burden).
Practice
Quiz
What does a 20% coinsurance mean for a $500 medical bill after the deductible is met?