Do I have to pay taxes on a payment from an automobile claim from car insurance after my car was totaled an accident if I was paid through PayPal?

Hi. I just got a 1099-K from PayPal for a payment I accepted through them from state farm for my car accident in which my car was totaled. When I put it in my TurboTax my taxes owed went away up. Maybe I put it in the wrong place but I didn't see anywhere else. Can anyone provide any guidance? Thanks!