I am trying to create a photo to be framed , with a single car image, and surround the image with words in different styles, tightly packed around the car?

From your description it sounds like you want to change the white backing to transparency.

If that is the case, here is one way:

1. Duplicate the Background layer and turn off its visibility.

2. Activate the Magic Wand tool, with the Contiguous box checked.

3. Click anywhere in the white background to select it.

4. Delete the selection. This replaces the white with transparency.

5. Save the file in png format which preserves transparency.

In the Word file, insert the png. Choose the "Wrap Through In Background" option for the picture (or similar named option depending on your Word version).  In this Word example I added a color background to demonstrate that the transparency indeed works, and I added text.

If this is not what you are trying to do, please clarify.

Note the reason for the duplicate layer: If you did the background select/delete on the "Background" layer (the default name), the deleted portion is replaced not by transparency but by the current color defined in the background color chip at the bottom of the toolbar. This is white by default so you would end up where you started!