Summary: Although CarShield may be a legitimate legal business, customers have had mixed feelings about the company. The numerous negative reviews and customer complaints about the company make it seem like CarShield is not worth it. The company even has an F rating and accreditation on BBB, the worst possible rating for any company on the review site. Many complaints cite poor customer support, very restrictive policy coverage, and incompetent staff.
CarShield is a company that provides extended warranty on both new and used vehicles. Since 2005, the company has covered over 2 million vehicles and paid over $1 billion in administrator claims. CarShield promises 24/7 roadside assistance, courtesy towing, and flexible payment plans.
Table of Contents
- CarShield Company Information
- What is CarShield?
- Is CarShield legal and safe, or is it a scam?
- Is CarShield Reliable & Trustworthy?
- The Pros & Cons of CarShield
- How does CarShield Make Money?
- Best CarShield Alternatives
- FAQs
CarShield Company Information
| Official Website: | https://carshield.com |
| Headquarters Location: | 503 Pearl Dr, St Peters, MO 63376, United States. |
| Founded: | 2005 |
| Industry: | Insurance |
| Ownership: | Mark Travis |
| Contact: | 1-800-587-4162, +1-800-588-8501, customerservice@carshield.com, https://carshield.com/help-support/contact-us/ |
| Trust Score: | Good |
| Social Media: | LinkedIn Twitter Instagram Facebook |
What is CarShield?
CarShield provides extended warranties to car owners regardless of whether their vehicle is new or used. This means that when your car needs repairs, they will, under certain circumstances, help with the costs. To take advantage of their policies, one must pay a monthly subscription fee, which varies, depending on the level of coverage.
If a policyholder files a claim, they must take it to a repair shop that does business with CarShield. According to the complaints listed on the Better Business Bureau, this is one of the greatest points of contention with their customers, as finding a location that does business with CarShield can often be difficult, and they usually do not inform the customer of this fact. CarShield may deny your claim if they discover that the damage to your vehicle was due to negligence.
Is CarShield legal and safe, or is it a scam?
While CarShield may not be a scam company or illegal, most customers would probably not describe them as safe to deal with. Since April 2020, CarShield has had an alert put on its Better Business Bureau profile for multiple issues related to false advertising and poor customer service.
CarShield currently has had over 1,000 complaints against them in the past year. These complaints generally fall into 3 categories:
- The customer was unable to find a repair shop that dealt with CarShield
- CarShield failed to cancel a customer’s account
- CarShield was unable to cover repairs
Customers posting complaints to the Better Business Bureau typically encounter all three issues. Initially, they cannot find where they have to bring their vehicle to get the repairs covered. Then once they find a repair shop that deals with CarShield, they are informed that their policy does not cover the issue, and they have to pay for the inspection themselves. After this experience, they called to cancel, only to find out months later that it was never canceled.
Is CarShield Reliable & Trustworthy?
In general, No. CarShield is neither reliable nor trustworthy. There are simply too many negative reviews online for it to be considered safe. As stated previously, CarShield has shown a pattern of failing to sufficiently inform its customers of what its policy covers and routinely failing to cancel its customers’ accounts. Unfortunately, it seems like the only time you will actually get an appropriate response from CarShield is if you go to the Better Business Bureau with a complaint.
While there may be certain circumstances where a customer saves money with their services, more often than not, this does not seem to be the case, which is how they are able to stay in business in the first place. If you are doing business with CarShield, expect you will end up putting out more money than you will get. Do not trust their advertisements; make sure you read the fine print.
The Pros & Cons of CarShield
Pros:
- Cheap Warranty Costs
- Flexible Plans, including month-to-month
- Covers new & used vehicles
Cons:
- Poor Customer Service
- The policy may not cover what you expect it to
- Most repair shops and dealerships do not deal with CarShield
How does CarShield Make Money?
Unfortunately, CarShield makes money by employing the tactics we have outlined above. If CarShield were paying their customers for every repair needed, they would not be able to stay in business. So their business model relies on their customers paying more than they get in return. They lure their customers in with false promises, giving them a false sense of security until it is time for them to actually file a claim. Once they realize that their repairs will not be covered and try to cancel their account, CarShield further tries to extract money from their customers by keeping their account open for as long as possible.
Best CarShield Alternatives
With everything listed above, it is understandable that consumers would want to find alternatives to CarShield. However, most businesses in this industry tend to employ similar tactics to mislead their customers. Despite this, here are a few CarShield alternatives for you to check out:
FAQs
How much does CarShield cost?
Their website says prices can be as low as $99/mo. However, the total cost depends on your vehicle’s make, model, mileage, and year. An additional cost associated with CarShield is inspection costs. When your vehicle is damaged, you are required to have certain inspections performed to verify the issue. Depending on the underlying issue and what your policy covers, CarShield may or may not cover these inspection costs. CarShield also has a $100 deductible for any repairs that need to be done.
What does CarShield cover?
CarShield has a variety of protection plans for different types of coverage. Their most basic plan covers “all lubricated parts on the engine, transmission, and water pump.” According to the policy, the engine block and heads will only be covered if they are damaged due to a failure of a lubricated part within the engine. Their plans do not offer coverage for electronic components. Additionally, CarShield only offers coverage up to 300,000 miles. CarShield does not cover maintenance or damage caused by negligence.
Does CarShield Cover Transmission?
Yes. CarShield’s plans also offer coverage for your transmission. Their most basic plan offers coverage for the torque converter and transmission mounts, but only if they are damaged due to a failure of an internally lubricated part.
What insurance company owns CarShield?
American Auto Shield administers CarShield’s contracts.
Which is Better: CarShield or Endurance?
While Endurance sometimes has lower rates for long-term contracts, CarShield contracts are cheaper in the short term. However, Endurance offers superior coverage at a lower cost than CarShield. Also, Endurance has the most extensive benefits and most comprehensive coverage in the industry with its Elite Benefits. According to online reviews, customers overall seem to prefer Endurance over CarShield. However, your particular circumstance determines which of the 2 is the better option for you.
How long do you have to have CarShield before you can use it?
CarShield plans have 20 days and 500 miles waiting before their coverage kicks in.
References:
- BBB Complaints – https://www.bbb.org/us/mo/saint-peters/profile/auto-service-contract-companies/carshield-0734-310030296/complaints
- CarShield Protection Plans – https://carshield.com/protection-plans/
- Silver Protection Plan – https://carshield.com/policies/AAS%20Powertrain%20M2M.pdf
- CarShield review – https://www.motor1.com/reviews/384094/carshield-review/