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?

No, you do not have to pay tax on the insurance payment you received for a wrecked car.  However, since the payment was reported on a Form K-1, you will have to report it on your tax return.  To do so, while in your tax return:

• Click on the Search Icon - Magnifying Glass
• Type in "1099-k"
• Click on "Jump to 1099-k"
• On the screen with "Did you get a 1099-K?" Answer Yes
• On the next screen with "How would you like to upload your 1099-K?"  Click on  "Type it in myself".
• For "Which type of income is your 1099-K for?" Indicate "Other".
•  Enter the information on your 1099-K
• Below Box 1a, check the box for "This amount in box 1a is too high or includes some personal transactions."
• For the box "Enter the amount that shouldn't be included", enter the same amount that is in Box 1a.