• About
    • Our Attorneys
    • Verdicts and Settlements
    • Community
      • Sponsorship Request
      • Partnerships
      • Project Backpack
    • Testimonials
    • Scholarships
      • Cancer Scholarship
    • Careers
    • Our Core Values
  • Practice Areas
    • Car Accident
    • Truck Accident
    • Motorcycle Accident
    • Product Liability
    • Mesothelioma
    • Workers Compensation
    • Dog Bite
    • Slip and Fall
    • Wrongful Death
    • Maritime Injury
    • Pedestrian Accident
    • Dangerous Drugs
    • Defective Devices
    • Mass Torts
    • Premises Liability
    • View All Practice Areas
  • Areas we Serve
    • Lafayette
    • Alexandria
    • New Iberia
    • Marksville
    • New Orleans
    • Monroe
    • Arnaudville
    • Baton Rouge
    • Breaux Bridge
    • Broussard
    • Cankton
    • Carencro
    • Cecilia
    • Duson
    • Cade Coteau
    • Grand Coteau
    • Lake Charles
    • Opelousas
    • View All Areas We Serve
  • Resources
    • Blog
    • FAQs
    • Videos
    • For Referring Attorneys
  • Hurricanes
  • Contact Us
Available 24/7 • 365 Days (337) 777-7777 Hablamos Español
(337) 777-7777 Hablamos Español
No Win - No Fee AVAILABLE 24/7

Are Car Accident Insurance Settlements Taxable?

Put 350 Years of Experience in Your Corner GET A FREE CASE EVALUATION
Your Voice is Our Voice
Attorney David Laborde | Attorney Digger Earles
  1. Home
  2. FAQs
  3. Are Car Accident Insurance Settlements Taxable?
On This Page
  1. What Are Economic and Non-Economic Damages?
  2. Can I Afford to Hire a Car Accident Lawyer?
  3. How Much Time do I Have to File a Lawsuit After a Car Accident?
  4. Reach Out to Our Attorneys Today for Help
Contact Us Today

Get The Help
You Need

I NEED HELP NOW

Your personal injury lawyer can help you calculate your recoverable damages, which may include:

  • Medical Bills
  • Income Loss
  • Property Damage
  • Pain & Suffering
  • Emotional Distress
  • Lasting Disfigurement
Are Car Accident Insurance Settlements Taxable?

 

According to the Internal Revenue Services (IRS), whether a car accident insurance settlement is taxable depends on what types of compensation you received and who you sued to get it. Generally speaking, economic and non-economic damages are not taxable, but any interest you collected on the settlement is taxable.

What Are Economic and Non-Economic Damages?

When you file a lawsuit, you will have to list all the ways your accident has impacted your life, health, career, and so on. Each of these items will fall into one of two categories: economic damages (monetary) or non-economic damages (non-monetary).

To know for sure what types of compensation you pursue, you can speak to a car accident attorney. In the meantime, review the following questions. They will give you a good general idea of what you may be eligible for.

Examples of Economic Damages

  • Loss of wages: Were you unable to go to work and/or perform your regular job duties for a limited period of time?
  • Loss of employment: Did you have to take early retirement because you can no longer do your job? Are you unable to find employment in your chosen field?
  • Repair bills: Did you pay someone to fix your car, or did you need to buy an entirely new vehicle because of the accident?
  • Medical expenses: Did you have to go to a doctor or emergency room to treat your accident injuries? Will you need continuing care on a long-term basis?

Examples of Non-Economic Damages

  • Pain and suffering: Were your accident injuries physically painful or inconvenient? Has your mental health suffered because of your injuries?
  • Diminished quality of life: Do your injuries prevent you from living independently or from participating in activities you love?
  • Disability: Have you lost the ability to use any part of your body the way you used to? Did you suffer brain damage?
  • Disfigurement: Have your injuries left you with scars that cause you pain or that irrevocably alter your physical appearance?

Calculating Damages

Once you know what types of damages you are eligible for, you must assign a dollar value to each one. This can be challenging for many reasons, including:

  • The emotional pain caused by remembering your accident and injuries
  • The difficulty in assessing your own injuries objectively
  • The lack of a “price tag” on non-economic damages, which do not have an established dollar value
  • The difficulty of anticipating how much your injuries may cost in the future (e.g., the estimated cost of future medical treatment)

A lawyer who handles car accident cases can help you with all of the above. They can calculate your damages accurately and consult with professionals, such as medical professionals or accountants, who can provide insight into your injuries.

CTA CTA

Laborde Earles injury was great for me they took care of me very fast and professional. If for any reason I need legal help they will be who I use.

Client
Call Us Today We Are Here For You
(337) 777-7777

Can I Afford to Hire a Car Accident Lawyer?

Be sure to work out an acceptable fee agreement before you hire an attorney. Many law firms will agree to work for a contingency fee. This means they charge you no attorney’s fees unless and until they help you get your money.

In exchange for a contingency fee, your car accident lawyer will:

  • Identify the liable party: Whether the liable party is a driver, a maintenance contractor, or someone else, your attorney can tell you who to sue.
  • Assign a value to your case: Not sure what or how much to sue for? Let your attorney run the calculations for you.
  • Negotiate on your behalf: Your lawyer will fight hard to make sure that the insurance company gives you the best possible settlement.
  • Fill out all forms: Paperwork may seem like a “small” thing, but it is vitally important in a lawsuit. Your lawyer will ensure it is handled properly.
  • Go to court for you: If the insurance company refuses to offer a fair settlement, your lawyer will be your advocate in the courtroom and seek to get fair compensation for you.

In addition to handling things at the negotiating table, your attorney will always make time for you. Call them whenever you have questions or concerns. It is their job to:

  • Explain legal concepts that affect your case
  • Advise you about your options
  • Update you regularly about your case’s progress
  • Help you make important decisions
CTA CTA

I thank God for Digger & David. I don’t know what we would have done if it hadn’t have been for them.

Rick Smith | Client
Contact Us Today We want to be there for you

How Much Time do I Have to File a Lawsuit After a Car Accident?

In Louisiana, you have two years to start a lawsuit after a personal injury, per CC 3493.1. Therefore, it is always better to contact a law firm as soon as you can. Your lawyer will need time to prepare a strong case that can support your request for compensation.

There is another benefit to filing a lawsuit quickly: more evidence will be available to prove your case. Evidence may include but is not limited to:

  • Witness testimony
  • Expert testimony
  • Medical records
  • Police reports
  • Photos and video recordings
CTA CTA

The reassurance from Digger and his staff gave me that renewed hope that it’s going to be okay down the road.

Client
Call Us - (337) 777-7777 We are here when you need us the most

Reach Out to Our Attorneys Today for Help

If you would like help pursuing compensation after a car accident, call Laborde Earles Injury Lawyers at (337) 777-7777. We can help you figure out if your car accident insurance settlement is taxable, how much money you may be able to recover, and more.

Car Accident Blog Posts:
I-10 Basin Bridge Speed Limit Change Addresses Safety Issues

I-10 Basin Bridge Speed Limit Change Addresses Safety Issues

The Louisiana Department of Transportation and Development (DOTD) changed the I-10 Basin Bridge speed limit to 60 miles per hour for all motorists. They also implemented "your speed" feedback signs to...

Laborde Earles to Represent the Hall Family’s Fatal Crash Lawsuit Against Kyren Lacy

Following the tragic Herman Hall crash in December on LA 20, attorney Digger Earles of Laborde Earles will represent the Hall family as they pursue compensation for the wrongful death of Herman Hall,...

100 Deadliest Days of Summer: The Risks of Teen Driving Accidents

100 Deadliest Days of Summer: The Risks of Teen Driving Accidents

The summer months can be some of the most dangerous on the road, especially for teen drivers. The time between Memorial Day and Labor Day is often called the 100 Deadliest Days of Summer because of...

Why We Are

The Best Choice For You

Over 1,000+ 5-Star Google Reviews Across Our Locations
Over $1 Billion Recovered For Our Clients
An Award-Winning Team in Your Corner
You Get the Full Team on Your Case, Including David & Digger
Communication with You is a Top Priority
We Give Back to Our Communities

No Fee Unless We Win Your Case

Available 24 hours a day • 7 days a week
GET YOUR FREE CASE EVALUATION
Car Accidents FAQ:
What Is the Leading Cause of Fatal Accidents on I-10? What Is the Leading Cause of Fatal Accidents on I-10?

While it is difficult to secure statistics regarding the single most common cause of fatal motor vehicle collisions on Interstate 10 (I-10), statistics indicate that driver error is the likely factor

What does a Broken Rib Feel Like? What does a Broken Rib Feel Like?

A broken rib typically causes sharp pain. If you have a tender area on your ribs that hurts with every breath, you may have a broken rib. You may also feel or hear a crack or pop when the injury

Who Is at Fault in a Merging Accident? Who Is at Fault in a Merging Accident?

Being involved in a merging car accident can leave many questions about who is at fault and how it may impact an insurance claim. Determining liability is especially challenging when vehicles merge

Contact Us Form
CONTACT US TODAY NO WIN, NO FEE GUARANTEE
Name(Required)
Name(Required)
Untitled
Untitled

FAQ Categories
  • Accidents in Intersection
  • Bicycle Accident
  • Car Accidents
  • Defective Product
  • Dog Bite
  • Head Injury
  • Hurricane Damage
  • Jones Act
  • Knee Injury
  • Maritime Injury
  • Medical Malpractice
  • Mesothelioma
  • Motorcycle Accidents
  • Neck Injury
  • Pedestrian Accidents
  • Personal Injury
  • Premises Liability
  • Rear End Collisions
  • Rideshare Accidents
  • Robocalling
  • Sexual Abuse
  • Slip and Fall Injury
  • Spinal Cord Injury
  • Traumatic Brain Injury
  • Truck Accidents
  • Whiplash Injury
  • Workers' Compensation
  • Wrongful Death
  • Zantac

 

Frequently Asked Questions
Do Workers’ Compensation Benefits Cover Occupational Diseases? Do Workers’ Compensation Benefits Cover Occupational Diseases?
What is the Average Settlement for Back Pain after a Car Accident? What is the Average Settlement for Back Pain after a Car Accident?
Can You Get Pain and Suffering with Workers’ Compensation? Can You Get Pain and Suffering with Workers’ Compensation?
Find Yourself a Passionate Lawyer Now!
  • Slidell Personal Injury Lawyer
  • Monroe Personal Injury Lawyer
  • Andrew Personal Injury Lawyer
  • Leesville Personal Injury Lawyer
  • Bunkie Personal Injury Lawyer
  • Ruston Personal Injury Lawyer
  • Forest Hill Personal Injury Lawyer
  • Gray Personal Injury Lawyer
  • Morgan City Personal Injury Lawyer
  • Erath Personal Injury Lawyer
How can we help you

How We Can Help You

Let our injury attorneys help you maximize the compensation you deserve to turn your life back around.


Contact us today if you want to tell us about your accident. We have someone available to discuss your situation at all times of the day.

Contact Us

(337) 777-7777

FREE Case Evaluation

No Win - No Fee
Name(Required)
Name(Required)
Email Opt In
SMS Opt in

Contact Us

(337) 777-7777

OFFICE LOCATIONS

Lafayette
1901 Kaliste Saloom Rd,
Lafayette, LA 70508

Phone : (337) 777-7777

Alexandria
100 Versailles Blvd, Suite A,
Alexandria, LA 71303

Phone : (318) 777-7777

Marksville
306 North Washington Street, Suite A,
Marksville, LA 71351

Phone : (318) 310-8922

New Iberia
230 W. Main Street,
New Iberia, LA 70560

Phone : (337)-547-2777

Lake Charles
530 E College St,
Lake Charles, LA 70605

Phone : (337) 612-6909

New Orleans
821 Baronne St, Suite D,
New Orleans, LA 70113

Phone : (504) 777-7777

Baton Rouge
660 St Ferdinand St,
Baton Rouge, LA 70802

Phone : (225) 777-7777

Practice Areas

  • Bicycle Accident
  • Car Accident
  • Dangerous Drugs
  • Dog Bite
  • Maritime Injury
  • Mass Torts
  • Motorcycle Accident
  • Pedestrian Accident
  • Premises Liability
  • Product Liability
  • Toxic Torts
  • Truck Accident
  • Slip and Fall
  • Wrongful Death

About Links

  • Our Attorneys
  • Verdicts and Settlements
  • Community
  • Testimonials
  • Scholarships

Leave a Review

  • LAFAYETTE
  • ALEXANDRIA
  • MARKSVILLE
  • NEW ORLEANS
  • NEW IBERIA
  • LAKE CHARLES
  • BATON ROUGE

Copyright © Laborde Earles Injury Lawyers 2025.
All Rights Reserved.

Disclaimer / Privacy Policy / Sitemap

Hennessey-Digital-Badge