What does the $500 Anthony had to pay before filing a claim refer to in his insurance policy?

In insurance terms, the amount that a policyholder must pay out of pocket before the insurance company covers the remaining costs of a claim is known as a deductible. In this case, Anthony's $500 payment is the deductible associated with his auto insurance policy. This means he is responsible for covering the first $500 of any claim before the insurance kicks in to help cover the rest of the expenses.

This is an important concept in insurance because it affects the overall cost of claims and premiums. Higher deductibles often result in lower premiums, while lower deductibles can lead to higher premiums, allowing consumers to choose a balance that suits their financial situation and risk tolerance. Understanding this helps individuals make informed decisions about their insurance coverage.