A well-crafted demand letter is often the fastest, least expensive way to resolve a vehicle damage dispute in the Philippines. It puts the at-fault party (or their insurer/employer) on notice, frames your legal theory and evidence, and can start the clock for interest, attorney’s fees, and litigation if needed. This guide explains—in practical, lawyerly detail—how to prepare, serve, and follow through on a demand letter in the Philippine context.

1) When and Why You Should Send a Demand Letter

To settle early. Many claims are paid once the other side sees clear evidence and a reasonable amount demanded.
To place the other party “in delay.” A formal written demand is a recognized way to constitute the debtor in default, which can affect liability for interest and damages.
To preserve and organize your case. It fixes your story, damages, and evidence on paper.
To support insurance and subrogation workflows. Insurers typically ask for proof of demand on the at-fault party.

Typical recipients

The at-fault driver and, if different, the registered owner of the vehicle.
The employer if the driver was on the job (possible vicarious liability).
The insurer (third-party property damage coverage, if any).
Your own insurer (for collision/comprehensive claims and potential subrogation).

2) Legal Foundations to Keep in Mind (Plain-English Overview)

This section explains the legal ideas your letter should quietly lean on.

Negligence (quasi-delict). If there’s no contract between you and the other driver, liability generally arises from negligence causing damage.
Breach of contract. If a contract exists (e.g., a repair shop, transport or parking services), liability may be contractual.
Vicarious liability. Employers, vehicle owners, and guardians may be liable for acts of their drivers/agents under specific circumstances.
Damages you can claim.
- Actual/compensatory damages (parts, labor, paint, diagnostics, towing, storage, appraisal fees, and loss of use measured by reasonable rental value—even if you didn’t actually rent a car).
- Interest (generally legal rate; commonly computed from demand or filing date).
- Attorney’s fees/costs (usually when you were compelled to litigate or the other side acted in bad faith).
- Moral/exemplary damages (exceptional; typically require bad faith, fraud, or gross negligence—not usually awarded for mere property damage).
Prescription (deadlines).
- Negligence/quasi-delict: generally 4 years from the time you were injured/damaged.
- Contract claims: generally 10 years if based on a written contract.
- Insurance policy “suit limitation.” Many motor policies require that a court action be filed within 1 year from final denial of the claim (check your policy wording). Tip: A demand letter does not “stop” prescription; filing cases or agreed tolling does.

3) Evidence to Gather Before You Draft

Accident documentation: police/traffic report, incident report, dashcam/phone videos, scene and damage photos, sketches, and weather/time info.
Vehicle documents: Official Receipt (OR) & Certificate of Registration (CR), driver’s license of parties, plate numbers.
Repair proof: shop estimates/quotations (preferably itemized with parts & labor), final invoices/ORs, before-and-after photos.
Loss of use: rental quotations, ride-hailing receipts, proof of business interruption (if vehicle is used for work), shop repair timeline.
Medical (if any): even minor injuries matter for valuation and negotiation.
Insurance: policy copies (yours and, if available, theirs), communications with adjusters, denial letters.
Witnesses: names, contact details, and sworn statements if possible.

4) How to Calculate Your Claim Amount

Repair Cost (net of depreciation if applicable). Use an itemized estimate; if you already repaired, use actual invoice.
Incidental Expenses. Towing, parking/storage, appraisal fees, replacement parts procurement, and reasonable transport while the vehicle is down.
Loss of Use. Daily reasonable rental value × number of repair days (or days reasonably necessary).
Less: Insurance Payouts. If your own insurer paid and you’re pursuing the unreimbursed balance (deductible/participation fee, depreciation, or uninsured portion), specify the breakdown.
Interest. State that you’ll charge legal interest from the date of receipt of demand if unpaid within your deadline.
Attorney’s Fees/Costs. If you intend to claim them, say so and identify the basis (e.g., you’ll be compelled to litigate).

Practical tip: Attach an Annex of Computations showing line items, dates, and totals.

5) Drafting the Demand Letter (Structure + Checklist)

A. Heading & Parties

Your name and address (or counsel’s letterhead).
Date.
Recipient’s full name(s), designation, and address (include plate no., company name for employers/owners, and insurer details if known).
Subject line: “Demand for Payment – Vehicle Damage from [date] collision involving [your plate] and [their plate]”

B. Factual Narrative (clear, chronological, neutrally toned)

When and where it happened (exact date and time, road, lane direction).
What each vehicle did just before impact; traffic signals/signs; speed; lane changes; safe distances.
Police report reference number, responding unit, and citations (if any).
Damage summary (visible + mechanical) and immediate steps taken.

C. Liability Theory

Short, specific negligence statements (e.g., failed to yield, illegal turn, unsafe lane change, speeding, distracted driving).
If vicarious liability applies: state that the driver was in the performance of duties or using a company vehicle.
If you rely on traffic rules: cite them plainly (stop signs, right-of-way, lane markings).

D. Damages and Computations

Itemize: repairs, parts, labor, paint, diagnostics, recalibration (ADAS), alignment, tires/rims, airbag modules (if any), loss of use, towing, storage.
Attach supporting documents (Annexes A–F).
Show the total amount demanded in pesos (₱).

E. Payment Demand and Deadline

Provide clear instructions: bank details (domestic transfer), GCash/PayMaya option, or manager’s check.
Give a reasonable deadline (commonly 7–15 calendar days from receipt).
State that interest will run if unpaid after the deadline, and that you’ll pursue legal action and attorney’s fees if necessary.

F. Coordination with Insurers/Adjusters (if applicable)

If you demand that their insurer contact you/your shop, say so.
Offer inspection availability (vehicle location and contact hours).

G. Closing & Signature

Sign; indicate your name and contact. If through counsel, include IBP, PTR, MCLE details (optional but professional).

H. Annexes

Annex A: Photos (scene & damage).
Annex B: Police/traffic report.
Annex C: OR/CR; driver’s license copy.
Annex D: Repair estimate(s)/invoice(s).
Annex E: Loss-of-use computations & receipts.
Annex F: Insurance documents and correspondence.

6) Serving the Demand Letter (How to Give Legal Bite)

Preferred methods (use more than one when stakes are high):

Personal service with signed Acknowledgment Receipt.
Registered Mail with Return Card (Registry Return Receipt/“green card”).
Accredited courier with delivery confirmation & tracking.
Email (ideally to a confirmed address) with a “read receipt” or explicit acknowledgment.
Service on corporations: deliver to the principal office shown in public records or to authorized officers.
Service on insurers: send to the claims office named in the policy, and (optionally) to the principal office.

What to keep:

Copies of the letter and all annexes sent.
Registry receipts, tracking pages, return cards, and signed acknowledgments.
A simple Affidavit of Service summarizing how/when/where you served.

Deadline clock. Make your payment deadline run from actual receipt (e.g., “within 10 days from your receipt of this letter”). The return card or acknowledgment proves the date of receipt.

7) Barangay Conciliation, Small Claims, and Next Steps

A. Barangay Conciliation (Katarungang Pambarangay)

Mandatory only for disputes between natural persons who live in the same city/municipality and are not otherwise exempt.
Not required when a party is a corporation/insurer, when parties live in different cities/municipalities, when urgent legal action is needed, or in other statutory exceptions.
If required and skipped, your case can be dismissed for lack of prior conciliation. Bring your demand letter and proof of service to mediation at the barangay.

B. Small Claims Court

If your case is purely for a sum of money not exceeding the current small-claims threshold (check the latest amount; it has been increased in recent years), you can file a small-claims case.
Pros & cons: quick, no lawyers required, but remedies are limited (typically no moral/exemplary damages and streamlined evidence). Ideal when you’re claiming repair cost + loss of use as a liquidated sum.

C. Regular Civil Action

For higher amounts or where you seek broader remedies (e.g., negligence with complex proof, attorney’s fees, and interest), file in the proper Regional Trial Court (or MTC depending on amount).
Venue: where the plaintiff resides or where the cause of action arose (for individuals); for corporations, where their principal office is located.
Parties: include the at-fault driver, registered owner, employer (if applicable), and insurer when appropriate.

D. Insurance Claims

Third-party property damage depends on the at-fault party’s policy (not CTPL; CTPL generally covers bodily injury/death, not property damage).
Your own policy (collision/comprehensive) can pay first; insurer then subrogates against the at-fault party.
Observe notice and documentation requirements and the policy’s suit-limitation clause after a denial.

8) Tone, Timing, and Negotiation Tips

Be firm, not hostile. Judges and adjusters respond better to clear facts than threats.
Offer a practical path: inspection window, shop contact, and an exact deposit method.
Set a realistic deadline (7–15 days) to avoid seeming unreasonable.
Follow up once, in writing, right after the deadline lapses—attach your earlier proof of service.
Document all calls/emails in a short log (date, who, summary).
Keep your car available for inspection until the other side has had a fair chance.

9) Common Pitfalls (and How to Avoid Them)

Vague facts. Use dates, times, lane positions, signage, and distances.
No number. Always state a peso amount and how you computed it.
Missing annexes. Unsupported demands are easy to ignore.
Skipping proper service. Without proof of receipt, interest/default can be contested.
Overclaiming. Inflated loss-of-use or speculative items hurt credibility.
Letting prescription run. Calendar your deadlines early; a demand letter does not suspend the prescriptive period.

10) Model Demand Letter (Fill-in Template)

Use this as a starting point. Tailor names, facts, and numbers.

[Your Name]
[Your Address]
[Mobile / Email]

[Date]

[VIA REGISTERED MAIL / COURIER / PERSONAL SERVICE]

[Name of At-Fault Driver]
[Address]

[Name of Registered Owner / Employer] (if different)
[Address]

Subject: Demand for Payment – Vehicle Damage from [Date] Collision
Involving [Your Vehicle: Make/Model, Plate No. ___] and [Their Vehicle: Make/Model, Plate No. ___]

Dear [Mr./Ms. Lastname]:

On [exact date] at around [time], along [exact road/location], your vehicle
[make/model/plate] driven by you/[driver’s name] [briefly state negligent act:
e.g., made an unsafe lane change without signal and struck my car’s left rear quarter panel].
The [police/traffic] report (Annex B, Ref. No. ___) and photos (Annex A) document the incident.

As a direct result, my vehicle sustained damage to [enumerate]. The itemized
repair estimate(s)/invoice(s) are attached:

  Repairs/Parts/Labor:           ₱ [   ]
  Diagnostics/Calibration:       ₱ [   ]
  Towing/Storage/Appraisal:      ₱ [   ]
  Loss of Use ([daily rate] × [days]): ₱ [   ]
  Subtotal:                      ₱ [   ]
  Less: Insurance payout to date (if any):  (₱ [   ])
  Total Amount Due:              ₱ [   ]

Please pay the **Total Amount Due** within **[10] calendar days from your receipt** of this
letter. Payment may be made by bank transfer to [Bank, Account Name & No.], or by manager’s
check payable to [Your Name]. Kindly coordinate inspection (if required) with [contact person]
at [location] during [days/hours].

Failure to pay within the stated period will constitute delay, and I will pursue all
available remedies including filing suit to recover the full amount **with legal interest**,
**attorney’s fees**, and **costs**.

If this demand is covered by your insurer, please immediately forward this letter and
Annexes to them and have their adjuster contact me within the same period.

Very truly yours,

[Signature]
[Printed Name]

Service Page (attach behind the letter):

Mode(s) of Service: [ ] Personal with acknowledgment  [ ] Registered Mail (RRR)
                     [ ] Courier (waybill attached)   [ ] Email (screenshot attached)
Date Sent: [   ]     Date Received (per RRR/Ack): [   ]

11) Quick Checklists

Drafting

Clear facts (date/time/place/lane/signs/speeds).
Liability theory stated plainly.
Itemized damages + total in ₱.
Attach photos, reports, estimates/invoices, OR/CR, insurance docs.
Payment options + deadline from receipt.
Interest/fees reservation.

Serving

Registered Mail with RRR and courier/email as backup.
Correct addresses (driver, owner, employer, insurer).
Keep registry receipts, waybills, and screenshots.
Prepare simple Affidavit of Service.

After the Deadline

Follow-up letter noting lapse and attaching proof of receipt.
Evaluate: barangay conciliation (if applicable), small claims vs regular civil action.
Calendar prescriptive deadlines and any policy “suit-limitation” dates.

12) FAQs

Q: Do I need to notarize the demand letter? A: Not required. Notarization can add formality but is optional.

Q: Can I demand from the employer instead of the driver? A: Yes, if the driver acted within the scope of work or used a company vehicle; include both driver and employer.

Q: What if my own insurer already paid? A: You can still demand unreimbursed portions (e.g., deductible, depreciation, uninsured upgrades). Your insurer may separately pursue subrogation against the at-fault party.

Q: How do I prove loss of use? A: Show reasonable rental value with quotations, and the period your car was non-operational (shop job orders, parts arrival dates, before/after photos).

Q: Can I recover moral damages for property damage? A: Usually no unless you prove bad faith or a circumstance allowed by law; focus on actual damages and loss of use.

Final Word

A precise, evidence-backed demand letter—properly served—often resolves vehicle damage claims without a day in court. Keep your tone professional, your computations transparent, and your service provable. If talks stall, your well-documented paper trail becomes the backbone of a barangay conference, a small-claims case, or a full civil action.