Is An Auto Insurance Settlement Taxable? 
Yes and no . Settlement amounts which are to cover vehicle repairs or even replacementand amounts to cover medical expenses resulting from the accident should not be taxable . Ifyou are compensated beyound medical expenses and vehicle repairs or replacement , such as lost wages , etc. . These amounts may be taxable . Tax laws change from year to year . Consult your local tax advisor to know what would be taxable under your set of circumstances . 