Carmaxx is replacement cost insurance. It sits alongside the policy you already have, and only comes into play if your vehicle is written off.

Under the policy, a total loss is direct physical loss or damage where the cost of repair exceeds your vehicle’s actual cash value at the time of loss, as determined by your primary insurer. Theft also counts as a total loss if the vehicle isn’t recovered within 30 days. Carmaxx does not make that determination and does not set the threshold.

ACV is what your vehicle is worth at the time of loss, rather than what you paid for it. The policy defines it as the lesser of your primary insurer’s settlement amount before deductions or penalties, an average-score Black Book valuation, or a value set by an appraiser chosen by the insurer. Standard auto policies settle at ACV, which is why a payout on a three-year-old car rarely buys the same car new.

Depreciation is the value your vehicle loses over time, fastest in the first few years. Meanwhile the cost of a comparable replacement tends to rise. Your settlement follows the falling line, your replacement is priced on the rising one, and the space between them is the gap this coverage is built for.

No, it sits on top. This is optional coverage that pays the difference between what your primary policy pays out and what it costs to get back into a comparable vehicle. You keep your existing insurer, and you must keep comprehensive and collision physical damage coverage in force on the vehicle for the whole term — if the primary policy lapses, or the primary insurer denies the claim, there is nothing for this coverage to top up.

Instead of settling against a value that keeps falling, the used vehicle plan measures your loss against a value fixed around the time you bought. After a covered total loss it pays the difference between your primary insurer’s settlement and the lesser of your purchase price, the amount of coverage shown on your application and declaration, or the Black Book fair market value of the vehicle when you bought it.

OEM means original equipment manufacturer — parts made by the company that built your vehicle rather than aftermarket equivalents. Insurers often authorise aftermarket parts on a repair, and this coverage pays the difference so OEM parts can be used, provided your primary insurer isn’t already obliged to use them.

It applies to repairs, not write-offs, and only on the New Vehicle Replacement plan. The policy covers a defined list of parts — exterior body panels, glass, suspension, rims, axles, radiators, air conditioning condensers and similar — and excludes powertrain, engine, transmission, electrical, exhaust and interior parts. Check the wording for the current list and limits before relying on it.

Your deductible is the amount you pay out of pocket before your primary insurer pays anything on a claim. Deductible reimbursement pays that back to you, up to $500, on both repairs and a write-off. On repairs it is capped at three claims over the term of the policy.

Eligibility is set by the policy and confirmed when you apply, but the broad strokes: the vehicle must be less than ten years from its date of manufacture, purchased for no more than $200,000 before tax, insured continuously under a primary policy carrying comprehensive and collision, and used privately rather than commercially. There is also a list of excluded exotic and luxury manufacturers, and vehicles already carrying replacement cost coverage from the primary insurer are not eligible. Ask us for a quote and we’ll confirm your specific vehicle.

A Proof of Loss is the written submission that formally sets out your claim — what happened, what you’re claiming, and the supporting documentation. It’s the standard starting document for a claim. You can download the Carmaxx Proof of Loss form from our claims page.