That is correct. Your insurance company is paying you for the estimated cash value of your vehicle prior to the loss. Therefore, you are paid in full and they own the salvage. By law, they are only required to pay you for your value less salvage value - but most people could give to dookies about their salvage or would not know what to do with it. So, originally as courtesy and now as a common practice, they pay you the full value and dispose of the salvage themselves. Check out your policy - most actually say actual cash value less salvage value. Another problem is that it is very hard to determine salvage value until bids are made.

Ok, class is over...sorry about that meant to put a quick blurb and it turned into this. In short, you can't touch any of the parts of your vehicle once totalled.