I bought a used Specialized Levo SL off Facebook Marketplace for $4,000 cash. It was a great deal. Two months later, it was stolen. I filed a claim with my renters insurance, and they asked for the “Original Purchase Receipt.” I sent them a screenshot of the Facebook chat. They laughed (metaphorically) and offered me $500, claiming that without a retail receipt, they couldn’t verify the value or condition.
Key Takeaways
- The “Proof of Value” Hurdle: Cash deals are a nightmare for claims. Insurers assume you overpaid or are lying about the model.
- Bank Trails: You need a withdrawal record or Venmo/Zelle transaction that matches the date of the chat messages.
- Immediate Appraisal: For high-value used bikes, get a local shop to write a “Statement of Value” or service receipt listing the model and serial number immediately after buying.
- Photos are Evidence: Take photos of the bike, the serial number, and the components the day you buy it.
The “Why” (Insurable Interest)
The insurer needs to know 1) You actually owned it, and 2) It was worth what you say.
“The insured must prove the value of the property at the time of loss.”
Without a receipt, it’s your word against their algorithm, which defaults to the lowest possible value.
The Investigation: How to Insure a Used Bike
I tested the onboarding process for used bikes with specialist carriers.
1. Oyster
- Process: They ask for the retail value. They require a photo of the bike and serial number at inception.
- Claim Time: They will accept a combination of bank transfer records and the seller’s ad if the original receipt is missing.
2. Velosurance
- Process: They encourage you to get a “Value Determination” from a bike shop if you don’t have receipts. It costs maybe $30 at a shop, but it locks in the “Agreed Value.”
3. Renters Insurance
- Process: They don’t ask for anything upfront. They only ask after the theft. This is where you get screwed. They will apply maximum depreciation.
Comparison Table
| Proof of Ownership | Reliability for Claim |
| Original Store Receipt | 100% (Gold Standard) |
| Venmo + Chat Logs | 70% (Dependent on adjuster) |
| Cash Withdrawal Slip | 20% (Very weak connection) |
| Bike Shop Appraisal | 90% (Strong evidence of condition) |
Step-by-Step Action Plan
- Create a Paper Trail: If paying cash, write a simple “Bill of Sale” on a napkin. “I, [Seller], sold [Bike Model] Serial [123] to [Buyer] for [$4,000] on [Date].” Both sign it.
- Get a Shop Service: Take it to a shop for a tune-up immediately. The receipt will list “Specialized Levo – Serial XYZ.” This proves you had possession of the bike on that date.
- Upload to Cloud: Save these documents to Google Drive/iCloud immediately.
FAQ
Can I insure a bike I built myself?
Very difficult. Most insurers only cover factory-produced e-bikes. DIY builds have no “market value” to reference.
What if I bought it from a friend?
Same rules apply. Get a written email or Venmo transaction note confirming the sale.
[IMAGE: Template of a handwritten “Bill of Sale” for a bicycle]