Is An Auto Insurance Settlement Taxable? 
This is a question best asked of your professional tax adviser , but in general , if the check is to cover repair of the damage done to your car , less your deductible , then the settlement amount is not taxable . Likewise , if it is to cover medical bills for injuries you have sustained , then it probably is not taxable . However , if there is a punitive amount included in your settlement , this amount may be taxable . However , as I said earlier , this is a question that is properly asked of a tax professional . 