My mother received a settlement check from a car INS. Company for a car accident that totaled her car, does she have to pay taxes on the amount on the check?

No - it's exempt from taxes.

Hello C:

No. She pay's taxes on income. This ISN'T income. She's not ahead. It just takes her back to where she started.

excon

Agreed, unless your mother's car is one of a handful of cars which are actually worth more now than when they were new.