The insurance payout and loan amounts are two different things. The insurance payout determines the amount of taxable gain on the vehicle for federal income tax purposes.
Since you haven't received an insurance settlement, you may report this one of two ways. If you know the amount of the insurance settlement, you can report this on your 2023 tax return or report a "0" payout like you suggest. This means in tax year 2024, you will need to report the insurance settlement amount as taxable income since it wasn't reported in 2023.
I would suggest reporting it this year in case if there is a tax code change for next year that may be unfavorable to you.
@srini82
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