Updated for Philippine practice and doctrine as commonly applied. Laws and policy wordings change; when in doubt, read your policy and consult counsel.

1) The Big Picture

A “minor collision” (gasgas, daplis) that leaves paint scuffs or dents is still a traffic incident. Philippine law treats it on two tracks:

Civil liability — who pays for the damage and how much;
(Possible) criminal liability — usually reckless imprudence resulting in damage to property under Article 365 of the Revised Penal Code.

Insurance sits on top of these: it doesn’t decide fault; it decides who will fund repairs first (insurer vs. individual) and who can later recover from whom (subrogation).

2) Governing Legal Framework

2.1 Quasi-delict (torts) and negligence

Article 2176, Civil Code (culpa aquiliana): Whoever by act or omission causes damage to another through fault or negligence is liable.
Article 2179: If the injured party also acted negligently (e.g., unsafe lane change), damages are mitigated proportionately (contributory negligence), not erased.
Article 2185: Violation of traffic regulations (e.g., beating the red light, illegal parking) creates a presumption of negligence against the violator.
Articles 19, 20, 21 (Human Relations): Bad-faith or willful acts may trigger moral/exemplary damages on top of actual repairs.

2.2 Owner/Employer liability

Article 2180:
- Employers are vicariously liable for their employees’ negligent driving within the scope of work, unless they prove due diligence in selection and supervision.
- Vehicle owners can share liability with the driver under specific circumstances recognized by jurisprudence (e.g., the “family-car” or “present owner” scenarios), especially where the owner’s negligence contributed (allowing an unlicensed/incompetent driver).

2.3 Criminal overlay (often avoidable by settlement)

Minor property damage can support a complaint for reckless imprudence resulting in damage to property (Art. 365 RPC), but these cases are commonly settled, especially where insurance covers the loss.

3) Insurance in the Philippines: What Actually Pays for Scratches?

3.1 Mandatory: CTPL (Compulsory Third-Party Liability)

Required for LTO registration.
Covers: Bodily injury/death only of third parties (not the vehicle owner, not property).
Does not cover property damage or paint scratches.
Contains No-Fault Indemnity (NFI) for bodily injury up to a statutory cap, paid regardless of fault to speed medical help. NFI never applies to property damage.

3.2 Voluntary coverages (via “Comprehensive” policies)

Most car owners buy these from private insurers:

Own Damage (OD): Repairs to your car’s accidental damage (e.g., you scraped a wall).
Theft: Loss or damage due to theft/attempted theft.
Acts of Nature (AON): Flood, typhoon, earthquake, etc.
Third-Party Liability — Bodily Injury (TPL-BI): Beyond CTPL limits.
Third-Party Liability — Property Damage (TPL-PD): Pays for the other car’s repairs when you are legally liable.

Deductible/Participation Fee:

For OD (your car), claims usually require you to shoulder a deductible (a fixed peso amount or % of sum insured, stated in your policy).
For TPL-PD (paying the other car), many policies do not charge you a deductible, but the claim still depends on legal liability and policy limits.

No-Claim Discount (NCD):

Claiming OD can reduce or reset your NCD at renewal; letting the other party claim under your TPL-PD typically does not affect your OD NCD (but check your policy).

Betterment & depreciation:

Insurers pay to restore pre-accident condition, not to upgrade. If new parts improve the car beyond pre-loss state, a betterment charge may apply.

4) “Who Pays?” — Typical Scenarios

Scenario	Fault snapshot	Who pays initially	Practical notes
You sideswipe a parked car and admit fault	Presumed negligent	Your TPL-PD (the other car repairs) or your cash; your OD covers your own car	Exchange details, get police report/affidavits/photos; PD payment is up to your policy limit
You scratch a post/wall (no third party)	Your own negligence	Your OD (less deductible) or cash	Small damage? Cash may be cheaper than losing NCD
Low-speed contact at an intersection; both contributed	Shared negligence under Art. 2179	Insurers may apportion (e.g., 50/50) or each uses OD	Adjusters rely on diagrams, CCTV, traffic rules to split
You are rear-ended while stopped properly	Presumption against rear driver	Their TPL-PD (your car repair) or your OD with subrogation later	If the at-fault driver is uninsured for PD, you may use OD then your insurer will pursue them
Company driver on duty hits another car	Employer vicarious liability	Employer’s TPL-PD/fleet policy	Employer may still pursue the driver internally
Hit-and-run unknown	Fault unknown/unavailable	Your OD (if insured)	Police report essential; without OD, recovery is difficult

5) Establishing Fault (and Defenses)

Traffic rule violations (lane markings, right-of-way, speed, signal use) strongly influence liability because they trigger presumptions of negligence.
Contributory negligence reduces, but doesn’t eliminate, the claimant’s recovery (e.g., sudden door opening into traffic, unsafe reversing).
Evidence wins minor cases: dashcam video, photos (close-ups and context), skid marks, debris location, witness statements, CCTV, and a police report.
Mitigation duty: The injured party must act reasonably to limit loss (e.g., obtain competitive repair estimates, avoid unnecessary storage charges).

6) What You Can Claim (Damages)

Actual/compensatory damages: Reasonable repair cost to pre-loss condition; loss of use (e.g., market rental value per day while the car is being repaired) if proven; towing.
Moral/exemplary damages: Only for bad faith, fraud, or egregious conduct — uncommon in mere scratches.
Interest and attorney’s fees: Discretionary; often reserved for cases where a party acted in bad faith or forced litigation.

7) Practical Claim Pathways

7.1 If you appear at fault (you scratched another car)

Stop, secure the scene, exchange details (names, licenses, plate nos., insurer/policy nos., phone numbers).
Document: Photos/video of positions and damage; capture street signs/markings.
Police/traffic report: Call the traffic unit (MMDA/PNP/LGU). Most insurers require an official report or at least notarized affidavits.
Offer options to the other driver:
- Your TPL-PD claim (if covered) up to the policy limit;
- Cash settlement (good for paint-only repairs); or
- Process both vehicles under respective insurers (your OD for your car; TPL-PD for theirs).
Notify your insurer promptly (policies often require immediate notice; many set 3–7 days). Late notice can be a ground for denial.

7.2 If you believe the other driver is at fault

Gather evidence; request the other driver’s insurer details for a third-party PD claim.
You may choose to claim under your OD for speed, then let your insurer subrogate against the at-fault driver/insurer.
If the other driver is uncooperative/uninsured for PD, consider barangay mediation (see 7.4) or civil action.

7.3 Insurer documents typically requested

Policy copy/COC, driver’s license, OR/CR;
Police report or sworn statements;
Photos, repair estimate(s), sometimes shop accreditation;
Accomplished claim forms; possibly drug/alcohol test results if relevant.

7.4 Settlement & dispute resolution

On-site settlement: perfectly lawful; write a simple acknowledgment/waiver with plate nos., amount, signatures, and IDs.
Katarungang Pambarangay (Barangay Justice System): Required pre-litigation conciliation for many civil disputes if parties reside in the same city/municipality and none of the statutory exceptions apply. You’ll need a Certificate to File Action if talks fail.
Small Claims Court: Vehicle damage/repair costs often fit here; procedure is summary (no lawyers required for representation of natural persons). Check the current jurisdictional amount and rules issued by the Supreme Court before filing.
Criminal complaint: Often used as leverage in serious or clear negligence, but minor scratches are commonly resolved civilly.

8) Special Notes on Parking-Lot Scratches

Unattended vehicles: Leaving contact details is prudent; fleeing may escalate to hit-and-run issues.
CCTV: Malls and buildings often cooperate with police/insurers upon request.
Illegal parking: Can shift or share liability (presumption of negligence), but does not automatically absolve a driver who failed to keep a proper lookout.

9) Cost Control: When to Use Insurance vs. Cash

Small paint jobs can cost less than your OD deductible and preserve your NCD — pay cash.
If you’re clearly at fault and the other car’s repair is modest, ask your insurer whether TPL-PD can be used (no OD/NCD impact for you).
If fault is disputed and you need the car fixed fast, use your OD and let subrogation sort out reimbursement later.

10) Checklist (Glove-box Ready)

Ensure CTPL is active; consider TPL-PD + OD in your comprehensive.
After an incident: stop, warn, help, document, call traffic.
Exchange details and take photos/video (close-ups and wide shots).
Secure a police report or affidavits.
Notify your insurer promptly and ask for the exact document list.
Get two repair estimates if possible; keep receipts.
Try amicable settlement; if needed, proceed to barangay then small claims.

11) Frequently Asked Questions

Q1: Can CTPL pay for the other car’s scratches? No. CTPL is for bodily injury/death of third parties only. Property damage requires TPL-PD under a voluntary (comprehensive) policy.

Q2: The other driver says “Let’s not call police.” Is a report necessary? Insurers commonly require a police report (or notarized affidavits) for claims. For small, cash-only settlements, it’s not legally required, but having written documentation protects both sides.

Q3: If both of us were careless, how do we split costs? Under Article 2179, damages are apportioned by each party’s contribution to the negligence. Insurers often negotiate a percentage split (e.g., 70/30).

Q4: The at-fault driver is uninsured for PD. What now? Use your OD (if any) to repair your car; your insurer can subrogate against the at-fault driver. Without OD, you can pursue barangay mediation or civil action for reimbursement.

Q5: Will claiming OD always affect my premiums? It can reduce or reset your No-Claim Discount at renewal. For tiny scratches below or near the deductible, cash is often wiser.

Q6: Can I claim “loss of use” (car rental) for a scratch? Yes, if you can prove the reasonable rental value and necessity. Not all policies automatically cover it; as a legal claim, courts may award it if evidence supports the amount and downtime.

12) Takeaways

Fault determines legal liability; insurance determines who pays first.
CTPL ≠ property damage coverage; get TPL-PD (and OD) if you want scratch-level incidents covered.
Evidence is king in low-damage crashes; document relentlessly.
For minor scratches, a simple, written settlement can be faster and cheaper than insurance — but notify your insurer if your policy requires it.

This article provides general information on Philippine law and common insurance practices for minor collisions. It is not legal advice. For policy-specific questions, review your policy conditions and speak with your insurer or a lawyer.