Car insurance question !!!

I have a full coverage policy but crashed into an object. The vehicle was totaled by them because they felt the vehicle wasn’t worth the amount it required to be saved. That was probably a month ago, I’m just waiting for them to pay it off. I noticed my insurance still took out the payment today so I asked the agent I was working with. He said that they will take it but once they pay it and I get a new car, it’ll adjust. I’m really new to cars/insurance/etc. so I’m really confused. Because from how I *thought* it was, I thought insurance was going to just pay the difference and close my policy until I got a new car (that I pay for on my own) and could reinstate it. I also have to pay a balance on the loan. Everyone I asked irl says it means they’ll replace it. But I don’t get it. Are they replacing it? Or does he just mean they’ll keep policy open for when I get my own?

*I tried to look in my paperwork but I can’t really find anything*