For drivers, riders, passengers, and adjusters. What’s legal, what’s risky, and how to document a private settlement properly.

1) The big picture

You can privately settle a minor, property-damage-only fender-bender without making a police report, but it must not violate duties imposed by law (stop, assist, identify yourself) and it may limit or jeopardize insurance claims later.
If there is death or physical injury (even “minor”), you should report to police immediately. Failing to do so can create criminal exposure and insurance denial.
A private settlement is just a civil compromise between the parties; it does not by itself erase possible criminal liability (e.g., reckless imprudence). In practice, for minor incidents, settlements and desistance often lead to non-filing or dismissal—but it’s not guaranteed.

2) What the law expects of you at the scene

Stop, stay, assist, identify. Drivers must stop, prevent further danger, give name/address and show driver’s license/vehicle papers, and render assistance to anyone injured. Leaving the scene (“hit-and-run”) can lead to criminal charges, license sanctions, and strong presumptions of fault.
Move vehicles if safe. For minor crashes blocking traffic and where injuries are not apparent, authorities encourage moving vehicles to the side after marking the positions and taking photos, to avoid congestion.
Exchange details. Swap names, addresses, phone numbers, plate numbers, OR/CR details, driver’s license numbers, and insurer info.

Rule of thumb: If anyone is hurt, or damage is substantial, or there’s intoxication, government property damage, or a dispute about fault—call police/HPG/MMDA and get an official Traffic Incident Report.

3) When a police report is advisable or required

Mandatory in practice (report ASAP):

Any injury or death (even if the parties “want to settle”).
Government property damaged (barriers, posts, road fixtures).
Hit-and-run or suspected criminal conduct (DUI, fake plates).

Advisable (strongly) for your protection:

High repair costs, commercial vehicles involved, or multiple parties.
You intend to use insurance (CTPL/VTPL/Own Damage). Most insurers, and nearly all CTPL bodily-injury claims, expect a police report; some will accept a Traffic Incident Certificate or Joint Affidavit for low-value property damage, but this is policy-specific.

Often optional (private settlement feasible):

No injuries, modest property damage, both sides cooperative, and neither party plans to claim insurance.

4) Private settlement: is it valid without a police report?

Yes—as a civil agreement between the motorists/owners. To be effective, it should be:

Voluntary, clear, and for adequate consideration (e.g., payment for repairs).
Documented in writing, with the parties identified and the vehicles described.
Supported by evidence (photos, videos, copies of licenses/OR-CR, repair estimates/receipts).

A civil settlement does not automatically extinguish potential criminal liability for reckless imprudence. However, a desistance (complainant’s affidavit) plus settlement often leads prosecutors to dismiss minor, injury-free cases. Not guaranteed.

5) Insurance implications (critical)

CTPL (Compulsory Third Party Liability) covers third-party bodily injury/death only. Police report and medical docs are typically required. Without them, expect denial.
VTPL/Property Damage and Own Damage (voluntary policies) usually require prompt notice and often a police/traffic report. Some insurers allow a Joint Affidavit of Accident and photos for minor PD claims—but this depends on your policy and claims guidelines.
Private cash settlement for repairs may waive or complicate later claims if you already released the other party and repaired the vehicle without the insurer’s inspection. If you might use insurance, call your insurer first before settling or repairing.

6) Evidence checklist (even if you won’t file a report)

Scene photos/video: vehicle positions, skid marks, debris, traffic lights/signage, weather/lighting.
Close-ups of damages on both vehicles (multiple angles), odometer cluster if relevant (warning lights).
IDs: licenses, OR/CR, plate numbers; take clear photos.
Witness contacts, dashcam/CCTV sources (ask nearby establishments to preserve footage).
Real-time notes: what each driver says, agreed cause, time and place.
Repair estimates or actual invoices; if paying cash, keep Official Receipts.

7) How to structure a clean private settlement

Key terms to include:

Parties/vehicles: full names, addresses, driver’s license nos.; vehicle make/model/plate/VIN.
Accident details: date, time, location, brief description (neutral wording).
Payment/undertaking: exact amount, mode (cash/transfer), or promise to pay by dates; or an undertaking to shoulder repairs at a named shop up to a peso cap.
Repair scope: reference the estimate; add a clause for latent damage handling (e.g., if hidden damage exceeding ₱__ is found, parties will confer in good faith).
Release: the payee releases and forever discharges the payer from further civil claims arising out of this incident, to the stated extent.
No admission: settlement is without admission of fault.
Insurance posture: either no insurance claim will be pursued, or insurer may subrogate (tailor to your intent).
IDs & signatures: both drivers and, ideally, registered owners (if different); attach ID copies.
Witness and date/place of signing.

Notarization: Not required for validity between parties, but notarizing or executing as a Joint Affidavit adds formality and helps with third parties (insurer/LGU). If the other side demands notarization, agree only if the text reflects your deal.

8) Sample outlines (short and usable)

A) Joint Affidavit of Accident (No Injury)

Parties’ full IDs and vehicle details
“On [date/time] at [location], our vehicles [describe neutrally]. No person was injured.”
“We exchanged documents and agree to settle privately as per attached Settlement.”
Signatures; jurat (notarization optional but helpful)

B) Settlement & Release (Property Damage Only)

Payment of ₱[amount] on [date]; receipt acknowledged
Release: “In consideration of said payment, Payee releases Payer from all civil claims arising from the incident on [date], limited to property damage described in [estimate/invoice].”
Latent damage clause: e.g., “If hidden damage exceeding ₱[cap] is found within 7 days, parties will confer in good faith; absent agreement, standard legal remedies apply.”
No admission; IDs attached; signatures of drivers and registered owners

C) Undertaking to Shoulder Repairs

Payer to repair at [shop] using OEM/like-kind parts, target turnover [date], with a peso ceiling and shop warranty; transport/ towing included.

9) When private settlement is not wise

Any injury (even “whiplash” or bruises)—medical issues can surface late.
Suspected DUI, unlicensed driver, or company/fleet vehicles (employer/insurer rules apply).
Damage to public property or third vehicles.
Other driver is evasive (fake IDs/plates) or refuses to be photographed or identified.
You plan to claim CTPL (bodily injury) or your policy requires a police report.

10) Barangay conciliation & court options (if talks break down)

If both parties are natural persons who reside in the same city/municipality, civil claims for property damage may be subject to Barangay conciliation before filing in court (with recognized exceptions).
Small Claims Court fits many car-damage disputes (money-only within the current small-claims cap). Bring photos, estimates, receipts, and any settlement communications.

11) Criminal angle (know the boundary)

Reckless imprudence (property damage / physical injuries / homicide) is a criminal offense. A civil settlement does not automatically bar prosecution. However, with no injuries and a signed settlement, complainants often choose not to pursue a case.
Hit-and-run / failure to assist can trigger charges independent of fault in the crash.

12) Practical playbooks

If you want to settle on the spot (no injuries):

Ensure no one is hurt; if unsure, call EMS/police.
Take comprehensive photos/videos before moving vehicles.
Exchange IDs and insurer details; call your insurer to ask about documentation.
Agree on amount or repair undertaking; write and sign a short settlement; take ID photos.
Pay via traceable method or issue a receipt if receiving.
Keep copies and repair the vehicle; store records for at least 3 years.

If the other party refuses to sign but wants cash now:

Don’t pay without a written acknowledgment and release. Offer to go to the nearest barangay hall or police desk to write it up.

13) FAQs

Do we “need” a police report for a minor fender-bender? No—not legally, if there are no injuries and both parties settle. It’s still wise to call police or at least your insurer when in doubt.

Will my insurer pay without a police report? CTPL for bodily injury: almost always needs a police report. Property damage/own damage: depends on your policy; many require at least a traffic certificate or joint affidavit. Ask your insurer before settling/repairing.

Can I change my mind after signing a release? Generally no for the covered items, unless the release was coerced, fraudulent, or grossly unconscionable—or truly new latent damage emerges beyond the agreed cap/window.

What if we settled and the other party still files a case? Your settlement and receipts are strong civil defenses, and they often persuade prosecutors not to pursue minor cases. For criminal complaints, consult counsel; desistance may still be sought.

Is notarization required? No. It adds weight but is optional. A clearly written, signed agreement with IDs attached is usually enough between the parties.

14) Bottom line

A private, on-the-spot settlement is lawful for minor, no-injury accidents—provided you stop, assist, identify, document thoroughly, and memorialize a clear payment/repair + release. For any injury, government property damage, or if you plan to use insurance, secure a police/traffic report. When in doubt, protect yourself: document first, settle smart, and keep your insurer in the loop.