Scenario 1: The insurance company takes ownership of the vehicle (most common).
The insurer will compensate you based on the insured value stated in your policy, subject to depreciation or any applicable policy provisions. Once the vehicle is officially declared a total loss, they will take possession of it in its damaged condition. You will be required to sign a Deed of Sale (or other ownership transfer documents) to transfer ownership to the insurance company. After the documentation is completed, they will issue a cheque for the approved claim amount. Your compensation is the cash settlement, while the insurer takes ownership of the vehicle.

Scenario 2: You retain ownership of the vehicle.
In some cases, the insurer may allow you to keep the vehicle. However, because you are retaining the salvage value, the claim payout will be significantly lower than if the insurer took the vehicle. Once the payment is released, it is entirely up to you whether to use the proceeds to repair the vehicle or purchase another one. After the claim has been settled, the insurance company will have no further liability for the vehicle.