My car loan is with bpi and my insurance is with bpi/ms. I have inquired about the AOG coverage with bpi/ms before and they explained that AOG is really a requirement with bpi. However, if the car loan is 2 years and below when purchased, special arrangement can be made with the bank to accept insurance without AOG. It depends on the "value" of the client if it will be approved. But if loan is more than 2 years, hindi talaga possible.
Upon renewal of policy, the depreciated value of the car should definitely be the basis. Im 100% sure about this. Even the insurance company would be losing money if the car is over insured and big insurance companies will never do this. If thats the case, the car owner can just intentionally damage the car totally after 5 years and get enough money to buy a brand new car again.