Coinsurance and copay are types of insurance mechanisms. Aside from the fact that they are two types of insurance methods, there are some differences as to how both work. Coinsurance simply means the joint assumption of risks between the insurer and the insured, or the joint assumption of risks between two or more insurers. Coinsurance ensures that all loses are evenly shared by both the insurer and the insured or between two or more insurance companies.
In some cases, the losses are shared based on agreement or percentage. Copay, on the other hand, requires the insured to make the payment as the insurance company is delivering its services. This is like a fixed payment that must be paid before the various services of the insurer can be fully enjoyed. Coinsurance can also be seen as a form of health insurance in which the cost of service is shared by both the insurance company and the insured