A co-pay is a percentage or fixed amount that an insured person must pay in conjunction with what the insurance pays. It is figured after the cost of any deductible.

Most often with travel insurance, there will be a small per-incident deductible, followed by a co-pay. For example, in an accident that cost $100,000 in medical expenses that is covered under a travel insurance policy, if the deductible is $250 and the co-pay is $200, here is how the cost to the insured will be figured. Subtracting the $250 from the $100,000 bill, the balance is $99,750. Of this amount, the insured person will pay 20%, which is $19,950. Now, the insurance plan will probably have a maximum amount that the insured will pay, before the insurance covers all of the expenses. Let's say that this amount is 5,000. Of the $19,950, the insured person only pays $5,000. So the total out of pocket expense for the insured person is $5,250, the co-pay plus the deductible. The insurance will cover the remaining 94,750.

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