Police Reports, Demand Letters, and Insurance Subrogation

Property damage from a vehicular accident—dented panels, shattered glass, broken gates, damaged motorcycles, ruined cargo, bent guardrails—often looks “simple” until the paperwork and liability questions begin. In the Philippine setting, outcomes turn on three practical levers:

Evidence (especially the police/traffic report and photos)
A proper demand (clear, provable, and legally framed)
Insurance mechanics (coverage, deductibles, and subrogation)

This article explains the end-to-end lifecycle of a property damage claim, from the roadside up to settlement or litigation, with special focus on police reports, demand letters, and insurer subrogation.

1) Legal foundations for property damage claims

A. Main causes of action

Most car-accident property damage claims in the Philippines are pursued under one (or more) of these theories:

Quasi-delict (tort) under the Civil Code (fault/negligence causing damage).
- Core idea: Whoever, by fault or negligence, causes damage to another, shall indemnify the latter.
Culpa contractual (breach of contract) when there is a contractual relationship (e.g., common carriers, paid transport arrangements, service agreements).
Civil liability arising from a crime when the accident is tied to a criminal offense (often “reckless imprudence resulting in damage to property,” sometimes with physical injuries).
- In practice, parties may settle civil aspects even while criminal complaints are considered.

Important practical point: For many property-only collisions, parties still use police documentation and sometimes criminal complaint routes as leverage; but the civil claim for repair costs can stand on its own.

B. Who can be liable (not just the driver)

Depending on facts, any of the following may be pursued:

The driver (personal negligence)
The vehicle owner (including the registered owner principle commonly applied in practice and jurisprudence for public protection)
Employer / principal if the driver was acting within assigned tasks (vicarious liability under Civil Code principles)
Operator / fleet owner / company when a company vehicle is involved
Parents / guardians in limited cases (e.g., minor driver)
The insurer only within the bounds of the insurance contract (your own insurer for your policy; the other party’s insurer if you can access their third-party property damage coverage and they accept liability)

C. Comparative fault and mitigation

Philippine civil law recognizes the effect of the claimant’s own negligence:

Contributory negligence does not necessarily defeat the claim, but can reduce recoverable damages.
You also have a duty to mitigate: avoid unnecessary storage charges, unreasonable repair delays, inflated estimates, or avoidable additional damage after the incident.

2) What to do immediately after the accident (evidence matters more than arguments)

Property damage claims are won or lost early. The priority is to lock in proof.

A. At the scene: collect, preserve, document

Photos/video:
- wide shots (road, lane markings, traffic signs/lights)
- vehicle positions before moving (if safe)
- damage close-ups and angle shots
- plate numbers, vehicle make/model, company markings
- skid marks, debris field, point of impact indicators
Dashcam/CCTV: secure copies quickly; many systems overwrite within days.
Driver details: full name, address, contact, license number; vehicle OR/CR details if available.
Witnesses: names and contact numbers; short on-camera statement if willing.
Do not casually admit fault. Exchange safety information; let facts speak.
Towing/storage: keep receipts and logs; note dates/times.

B. Report to the proper authorities

Where possible, involve traffic enforcement or police—especially when:

there is a dispute on fault,
damage is significant,
a third-party property is damaged (walls, posts, storefronts),
a company or government vehicle/property is involved,
there is suspected intoxication or hit-and-run,
insurance claims will be made.

3) Police reports in the Philippine context: what they are, why they matter

A. “Police report” can mean different documents

Depending on locality and agency, you may encounter:

Police blotter entry (logbook record; basic incident record)
Traffic accident investigation report / traffic accident report (more detailed; may include diagram/sketch, narrative, preliminary fault assessment)
Investigator’s report / spot report (initial narrative)
Certificates sometimes requested by insurers (e.g., certification that an incident was reported)

Key idea: Insurers and settlement negotiations typically value a traffic accident report more than a blotter entry because it can contain diagrams, positions, and an officer’s observations.

B. What police reports usually include (and what they usually do not)

Typically included:

parties involved and identifiers
date/time/location
vehicle info (plates, type)
basic narrative and sometimes diagram/sketch
witness info (sometimes)
apparent violations (sometimes)

Usually not definitive:

a final judicial finding of negligence
a binding determination of liability

A police report is persuasive evidence, not an automatic “win.” It supports your timeline and helps insurers decide.

C. Common problems with police reports—and how they affect claims

Incomplete details (missing plate number, wrong address, wrong vehicle type)
No diagram or unclear diagram
One-sided narrative (officer spoke to only one party)
“For record purposes only” entries
Delayed reporting leading to credibility issues
Inconsistencies vs. photos/dashcam

These issues can cause:

claim denial or delay,
reduced settlement,
shifting burden to you to prove fault through other evidence.

D. Practical handling: securing and using the report

Request a certified true copy or official copy when needed for insurance or court.
Preserve all ancillary papers: acknowledgments, towing logs, repair estimates, receipts.
If there is a clear clerical error, request correction through the issuing office’s process and keep proof of the request.

4) Building the property damage claim: what damages are recoverable

A. The core recoverable items (typical)

Repair costs supported by:
- itemized estimate, job order, and final invoice/official receipt
Replacement cost for parts or items beyond repair
Towing and recovery fees (reasonable)
Storage fees (reasonable and unavoidable; scrutinized heavily)
Out-of-pocket expenses directly caused by the incident

B. “Loss of use” / downtime claims

If you can prove you were deprived of the vehicle’s use:

rental cost of a substitute vehicle (reasonable class and duration), or
lost income for commercial vehicles (with strong documentation)

These are often disputed and require tight proof: bookings, prior income records, delivery schedules, or rental invoices.

C. Diminution in value (DV)

Even after proper repair, a vehicle may have reduced market value due to accident history. Claims for DV are possible in theory as actual damages, but are heavily contested and typically require:

pre-accident market baseline,
post-repair valuation evidence,
credible appraisal methodology.

D. Total loss vs repair

When repair costs approach or exceed the vehicle’s pre-accident value, disputes arise:

Claimant may argue for fair market value at time of loss (less salvage, if applicable).
Insurers often apply policy terms defining total loss thresholds.

5) Who pays: common scenarios and paths to recovery

Scenario 1: The at-fault party pays out-of-pocket

You send a demand, negotiate, and settle by:

full payment upon presentation of final bill; or
partial payment now + balance after repairs; or
agreed lump-sum settlement.

Always document settlements in writing.

Scenario 2: You claim under your own insurance (faster, then subrogation)

If you have comprehensive coverage (e.g., own damage), your insurer may pay repairs (less deductible) and later pursue the at-fault party via subrogation.

This is the most efficient path when liability is disputed but you need repairs quickly.

Scenario 3: You claim against the other party’s insurance

If the other party has third-party property damage coverage and they report promptly, their insurer may pay—but only if:

the insured cooperates,
liability is accepted,
documents are complete,
policy conditions are satisfied.

This route is commonly delayed by non-cooperation of the at-fault driver/owner.

6) Demand letters: the backbone of property damage recovery

A demand letter is not just a “formal request.” In practice, it:

anchors your narrative,
starts the paper trail,
supports claims of bad faith/unreasonable refusal (where applicable),
is a prerequisite in many settlement efforts,
is useful evidence of extrajudicial demand and seriousness.

A. Whom to address

Depending on your evidence, address the demand to:

the driver and the vehicle owner (and registered owner, if different),
the employer/company (if within scope of work),
sometimes the insurer (for notice and coordination, not as the primary debtor unless policy obligations apply).

B. What to include (highly practical checklist)

Accident summary: date, time, exact place, how it happened
Parties and vehicles: driver/owner details, plate numbers
Fault basis: brief—traffic violation, unsafe maneuver, failure to yield, etc.
Damage breakdown: itemized amounts with attachments
Supporting evidence list: photos, police report, estimates, receipts, witness statements
Demand: exact amount and what it covers
Payment terms: where/how to pay; reasonable deadline
Reservation of rights: including further costs discovered later
Consequences: filing of appropriate civil action and/or complaint if ignored (state neutrally; avoid threats)

C. Attachments that make demands “settleable”

police/traffic report copy
repair estimate (itemized)
photos before and after
ORs/invoices
towing/storage receipts
proof of ownership (OR/CR) if relevant
proof of commercial use (if claiming downtime)
witness affidavit (when contested)

D. Service and proof of receipt

A demand is strongest when you can prove receipt:

personal service with acknowledgment; or
courier with delivery proof; or
registered mail with registry return card; or
email plus corroborating proof (best paired with another method)

7) Insurance subrogation: what it is and how it changes the fight

A. The concept (plain-language)

Subrogation means: once an insurer pays its insured for a covered loss, the insurer “steps into the shoes” of the insured to recover from the party legally responsible for the damage—up to the amount paid.

This is grounded in insurance principles recognized under Philippine law and practice.

B. When subrogation arises

Generally, subrogation arises upon payment by the insurer. Before payment, the insurer typically has no subrogation rights to enforce in its own name based solely on the accident.

C. What the insurer needs to subrogate successfully

Subrogation depends on the same things your own claim depends on:

proof of the other party’s fault
proof of the amount of loss paid
proof that the insured had a valid claim against the at-fault party
proof the insured did not release or waive claims in a way that destroys recovery rights

D. The insured’s duties (critical)

If you claim under your own policy and want your insurer to recover (and sometimes to help you recover your deductible), avoid these pitfalls:

Do not sign a broad quitclaim/release in favor of the at-fault party without coordinating with your insurer.
- A release can extinguish the insurer’s future subrogation rights.
Cooperate: provide police report, dashcam, statements, receipts.
Preserve evidence: damaged parts may be requested for inspection.

E. Deductible recovery and “who gets what”

Often:

Insurer pays repair cost less deductible.
Insurer subrogates to recover the amount it paid.
Recovery of the insured’s deductible depends on policy terms and arrangements; in many real-world cases, deductible recovery is difficult unless clearly pursued and supported.

F. Subrogation in practice: insurer-to-insurer vs insurer-to-owner/driver

If both parties are insured, insurers may negotiate directly or follow industry settlement practices.
If the at-fault party is uninsured or uncooperative, the insurer may pursue:
- demand and collection against the owner/driver, or
- civil action to recover amounts paid.

8) Negotiation and settlement mechanics (and how not to sabotage your claim)

A. Repair-first vs cash settlement

Repair-first: strongest when you can show actual invoices and completed work.
Cash settlement: faster, but invites haggling over estimates, depreciation, and “cheaper shops.”

B. Avoid “inflated” documentation

Insurers and defendants scrutinize:

non-itemized estimates,
unusual labor charges without explanation,
missing ORs,
related-party shops with questionable billing,
storage charges that balloon due to delay.

C. Releases and quitclaims

A settlement document should match the deal:

If payment is only for property damage, don’t sign a release that covers “all claims of whatever nature” unless that is intended and compensated.
If there may be later-discovered damage, reserve rights in writing.

9) When settlement fails: litigation options and procedural realities

A. Possible forums

Regular civil action for damages
Small claims (when the claim qualifies as a straightforward money claim within the Supreme Court’s small claims coverage and jurisdictional thresholds, as amended from time to time)
Criminal complaint (e.g., reckless imprudence resulting in damage to property) where applicable, often with a civil aspect

Choice of forum depends on:

total amount,
complexity (fault disputes, expert evidence),
whether you need witnesses/dashcam authentication,
urgency and cost considerations.

B. Evidence in court (what actually persuades)

dashcam video with proper identification and chain-of-custody
credible, consistent photos with timestamps/metadata
independent witnesses
officer testimony or report credibility
repair invoices and ORs (not just estimates)
proof of market value if total loss or DV is claimed

C. Prescription (time limits)

Time limits vary by legal basis:

Quasi-delict claims generally prescribe in four (4) years from the date of the accident.
Claims based on written contracts often have longer periods than tort claims.
Civil liability tied to a criminal offense involves additional rules linked to the offense and procedural posture.

Because classification affects deadlines, parties commonly treat the earliest plausible prescriptive period as the safer planning baseline.

D. Barangay conciliation (Katarungang Pambarangay) considerations

Some disputes between individuals residing in the same locality may require barangay conciliation before court filing, subject to statutory exceptions (e.g., where parties reside in different cities/municipalities, urgent legal action is necessary, or other enumerated exemptions apply). In vehicle accident cases, applicability depends on the parties’ residences and the exact claim posture, so practitioners often evaluate it early to avoid dismissal for prematurity.

10) Special situations you should anticipate

A. Hit-and-run

police report and rapid evidence capture become crucial
check nearby CCTV sources immediately
your own insurance may be the primary practical remedy if the at-fault party cannot be identified

B. Government property and regulated areas

Damage to guardrails, posts, tollway assets, and government installations often triggers:

formal assessment,
official billing,
administrative or enforcement processes,
heightened documentation requirements.

C. Company vehicles and “scope of employment”

If the driver was on duty or acting within assigned tasks, the employer may be pursued under vicarious liability principles—but facts matter:

time, route, purpose,
employment role,
whether the act was within authorized functions.

D. Multiple vehicles (chain collisions)

Fault may be split; preserve multi-angle evidence and sequence:

who initiated the chain,
following distance issues,
sudden stops vs reckless driving,
lane changes and merging behavior.

E. Property other than vehicles

Claims for damaged fences, storefronts, signages, and cargo should include:

ownership proof,
pre-incident condition (photos/inventory),
repair/replacement invoices,
third-party contractor quotations.

11) Practical templates (content guidance)

A. Demand letter structure (outline)

Heading: Date; name/address of recipient(s)
Subject: Demand for payment of property damage (date/place of incident)
Narrative: concise facts and fault basis
Damages: itemized table of amounts
Attachments: numbered list
Demand: total amount; deadline; payment instructions
Reservation: continuing damages and legal remedies
Signature: claimant details; contact

B. Document packet checklist (for settlement or insurance)

police/traffic report or blotter certification
photos/videos (with backups)
dashcam file (original copy if possible)
repair estimate + final invoice + OR
towing/storage ORs
OR/CR copies (as needed)
written statements/affidavits (if contested)
proof of commercial use/downtime (if claimed)
communications log (texts/emails, call notes)

12) The core takeaways

A police/traffic report is not a “judgment,” but it often determines whether insurers and opposing parties treat your claim as credible.
A demand letter is not decoration—it is a litigation-ready narrative with receipts, designed to end the dispute before it becomes expensive.
Subrogation shifts the battleground: once your insurer pays, recovery efforts may be pursued in the insurer’s name, but your actions (especially signing releases) can make or break that recovery.
Strong property damage claims are built on clear fault proof + clean documentation + reasonable, supportable amounts.