What does the term "Final Salvage Figure" refer to?

The term "Final Salvage Figure" specifically relates to the amount that an insurance company receives for a vehicle that has been deemed a total loss. When a vehicle is significantly damaged and is not economical to repair, the insurance company will typically take possession of it and sell it as salvage. The final salvage figure represents the value obtained from this process, reflecting what the insurer is paid when the vehicle is sold at salvage auction or to a salvage yard.

This figure is critical in determining the financial outcome of a totaled vehicle, impacting the claim settlement for the insured party. In contrast, other terms listed such as the selling price after repairs, repair estimates, or purchase prices do not accurately define what the final salvage figure represents in the context of vehicle valuation and insurance claims.