I bought a rare “New Old Stock” (NOS) grille for my 1970 Chevelle at a swap meet. I paid $800 cash to an old guy with a folding table. No receipt. Two months later, my garage was robbed. The adjuster wanted “Proof of Purchase.” I had nothing.
Key Takeaways
- Cash is Untraceable: Insurers hate cash transactions. They assume fraud.
- The “Affidavit of Value”: You can submit a sworn notarized statement (Affidavit) listing the item and value, but it’s weak evidence.
- Immediate Documentation: The moment you buy a part with cash, take a photo of the part and the cash changing hands, or the part in your trunk.
- Bank Withdrawal Records: Keep the ATM receipt showing you withdrew $800 that morning. It helps build the circumstantial case.
The “Why” (The Trap): Verification
The policy requires you to “Submit to examination under oath and provide records.”
If you can’t provide a record, they don’t have to pay.
NOS parts don’t have “Book Values” like an iPad. The value is subjective.
[IMAGE: Photo of a rare car part sitting on a swap meet table with a hand-written price tag]
The Investigation: I Called Them
How do I prove a cash purchase?
1. State Farm
- Response: “We need a receipt or a credit card statement.”
- Alternative: “Find a comparable listing online showing that part sells for $800.”
2. Independent Adjuster
- Advice: “If you don’t have a receipt, I need to see the part installed on the car in a photo. If it was sitting on a shelf and stolen, and you have no receipt and no photo? I deny it.”
3. Creating a Paper Trail
- Hack: Write your own receipt. Ask the seller to sign a piece of notebook paper: “Sold Grille for $800.” Take a photo of it. It’s legally a receipt.
Comparison Table
| Proof Level | Likelihood of Payout |
| Cash / No Receipt | Low (10%) |
| Handwritten Receipt | Medium (60%) |
| Photo of Item in Possession | High (90%) |
| ATM Slip + Photo | Medium/High |
Step-by-Step Action Plan
- Carry a Receipt Book: Buy a $2 receipt booklet. When you buy at a swap meet, fill it out and have the seller scribble a signature.
- Photo Log: Take a picture of your haul before you leave the meet.
- Inventory: Add the parts to your “Spare Parts” spreadsheet immediately.
- Online Comps: Print out an eBay listing for the same item. Keep it with your records. “I paid $800, here is one selling for $900.”
FAQ Section
Does homeowners insurance cover parts?
Yes, usually, but subject to the deductible. If the part is $800 and your deductible is $1,000, you get nothing.
What if I traded parts?
Document the trade. “Traded Intake Manifold (Value $400) for Grille.”
Is there a limit on cash purchases?
No, but suspicious claims (e.g., “$10,000 in cash parts stolen”) trigger Special Investigation Units (SIU).