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We often see co-insurance clauses in our policies. Have you ever understood what it is? Co-insurance is one of the terminologies in insurance industry which are often misunderstood and misinterpreted. Of course, you can ask your insurance agent to better explain what it is. For our readers, Axis Capital, with a group of insurance and reinsurance companies scattered around globe from Bermuda to Singapore, Australia, United Kingdom and more than ten states in the US of A, has summarized the definition of Co-insurance in layman's terms. Co-insurance, in a sense, is the amount you have to share for the cost of your insurance. It is often computed in percentage. For instance, a man's health insurance covers 85% of his hospital dues. The remaining 15% of the fee is your coinsurance. For that, you'd think you have figured it all out until you stumble upon the term, "deductible". This in itself is a little bit similar with co-insurance and is often mistaken for the other and/or interchanged. Deductible is the amount you have to pay before your insurance begins to pay. Blue cross has provided this best example: Let's say your plan's deductible is $1,500.