Deductions & credits

If you sold your personal property, the vehicle, for less than what you paid for it originally, the loss on the sale of personal property is not reported on a tax return.

 

The funds you received for the damage to the new car are is your own money being returned to you.  That is not taxable income so is not reported on a tax return.

 

The above assumes that the vehicles were not being used in a business but were for personal use only.