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Why CarShield Isn’t A Ripoff: Key Takeaways
- 6 levels of coverage that come with roadside assistance, including specialty plans for ATVs, Motorcycles, and high-tech electronics.
- Rates starting at about $150 per month. In our industry study, we name CarShield as the Affordable Monthly Payments.
- Sample policies on CarShield’s website provide customers with the information they need to understand what’s included in their coverage.
- Great reviews from customers on TrustPilot, Google, and MarketWatch
CarShield is a popular vehicle service contract providers and continues to build its reputation. You may have heard of the company due to its high volume of TV commercials and online ads. But is it one of the more reputable extended car warranty companies?
The short answer is yes, CarShield is a trustworthy company. CarShield has been in business since 2005 and holds a strong reputation in the extended warranty industry. The St. Peters, Missouri-based company also ranked as the Most Affordable warranty option in our review of the best extended car warranty companies. CarShield offers a wide range of protection plans, flexible payment options, and several deductible choices.
Is CarShield A Legitimate Company?
Yes, CarShield is a legitimate extended auto warranty provider. In our industry-wide study of the best extended car warranty companies, gave CarShield a review score of 4.3 out of 5.0 stars and recognized the provider for “Affordable Monthly Payments” in 2024 based on its comprehensive coverage, outstanding reputation, and affordable rates.
Those who purchased coverage from CarShield seem to believe the company is legit, as evidenced by the thousands of positive reviews the company has earned:
- BBB customer review score: 1.48 out of 5.0 stars based 2,400 customer reviews
- Google customer review score: 4.2 out of 5.0 stars based on over 12,037 customer reviews
- Trustpilot customer review score: 4.2 out of 5.0 stars based on 47,000 customer reviews
When considering the customer review scores above, CarShield’s Better Business Bureau ratings may raise legitimate concerns with some customers. Although CarShield’s performance on that particular platform is relatively abysmal, this is outweighed by the number of positive reviews the company has received from Google and Trustpilot. Though it’s important to do your homework with regards to CarShield’s pricing, coverage, and customer experience before purchasing an extended car warranty from the company, the evidence makes it clear that CarShield is a reputable extended car warranty company.
Is CarShield Reputable?
While CarShield is a leading extended car warranty company that has served its customers since 2005, it’s subpar Better Business Bureau ratings and relatively high amount of customer complaints is enough to cause concerns for some potential customers.
CarShield has been directly criticized by the Better Business Bureau due to a pattern of complaints on the platform. According to the BBB, this pattern of complaints includes failing to coverage repairs, failure to explain coverage period before coverage starts, poor customer service, an inability for customers to find a repair shop, misleading advertising practices, and a delayed processing of claims.
In one notable example, the BBB claimed that CarShield mislead customers by creating a false sense of urgency via advertising mailers that were purportedly inaccurate. For reasons that stem from these criticisms, the Better Business Bureau has given CarShield an F rating.
In response to this potentially damaging criticism, CarShield has denied the above allegations, asserting that it is devoted to providing accurate and transparent information to consumers about the vehicle protection products that it offers. After being contacted by the Better Business Bureau in April and December 2020, CarShield released a statement that reads:
“CarShield works hard to provide excellent customer service to all consumers we encounter and to meet the demands and standards set forth by the BBB.”
Is CarShield A Good Company?
Although CarShield offers a wide variety of coverage options and has some of the most affordable prices in the industry, the provider can improve in areas related to customer service. In our industry-wide review, our review team gave CarShield a 4.6 industry-reputation score and a 3.8 customer service score. Both of these category ratings were lower than the overall rating of 4.3 out of 5.0 stars that the provider earned.
Most notably, CarShield customers that have issued complaints seem most often frustrated with the company’s claims experience. Much of the reason for this frustration is the fact that the sample contracts on CarShield’s website are often confusing for customers that are generally unfamiliar with how extended car warranties work. Clearly, while coverage and cost are strengths for CarShield, the provider scores below average in areas related to industry reputation and customer service.
CarShield Email Scam
While CarShield isn’t a scam, there have been instances where spammers have pretended to be CarShield in scam emails. According to factchecking website Snopes, which reviewed several of these scam emails in March 2022, there have been many “Welcome To CarShield” emails that appear to be the company but in fact are not genuine. When users click on the call to action in the email, they are then re-directed to unfamiliar sites that appear to be fraudulent.
To prevent criminal entities who are engaging in this scheme from stealing your personal information, Snopes recommends the following:
“If readers receive one of these scam emails that shows the CarShield name, we especially advise against clicking any links. Opening the email might not be dangerous, but clicking on links is another matter entirely.”
Is CarShield A Ripoff?
CarShield offers 6 coverage plans, all of which come with roadside assistance, that protect against unexpected repair costs that come as a result of mechanical breakdowns. In addition to contracts for Spanish-speakers, CarShield offers unique coverage options for high-tech components and specialty vehicles, including ATVs and motorcycles. Starting at $99 per month, CarShield’s plans can be cancelled at any time.
CarShield’s reputation for affordability is well deserved. Our team inquired about getting an unlimited Diamond plan on a 2021 Nissan Altima with a vehicle mileage of 42,000 miles. After a $200 deductible, the estimated payment was about $149.99 per month.
Extended car warranty costs depend on a wide range of factors. The price you pay will be largely determined by your vehicle’s make, model, age, and mileage. The coverage plan and deductible you choose will also have major impacts on how much you pay.
CarShield is the largest vehicle service contract company in the nation and has options for drivers looking for low monthly payments and plans that don’t expire. CarShield contracts renew every month, and your vehicle coverage continues even after expensive repairs. Many CarShield reviews compliment the company’s great customer service.
Companies Better Than CarShield
With these issues in mind, it’s important to do your research with regards to CarShield. Make sure to read reviews of the company and assess whether or not the provider is the best choice for you. While CarShield offers month-to-month payment plans and affordable rates, the company isn’t the best choice for everyone. In order to make the best decision regarding an extended car warranty, we recommend getting quotes from at least three providers so that you can best understand which company best fits your needs.
If you seek an alternative to CarShield, other top providers to consider include Endurance and CARCHEX.
Endurance: Best Overall
A direct provider of extended warranties, Endurance has been in business for 15 years and is known for its excellent reputation. The company holds a place on the 2020 Inc. 5000 – a ranking of the nation’s fastest-growing companies – and sponsors Jarett Andretti of Andretti Autosport in the racing world.
Endurance plans offer coverage for up to 200,000 miles, and our Endurance warranty review found prices to be very competitive. With any Endurance extended warranty, you get benefits such as roadside assistance, tire repair and replacement and key fob replacement during the first year of coverage.
Carchex: Best Reputation
Similar to Endurance, CARCHEX has an excellent reputation for comprehensive coverage and top-notch service. The extended car warranty provider has been offering vehicle service contracts for more than 20 years and has plans available in every state, including California. CARCHEX partners include Kelley Blue Book and Edmunds.com, which add to the company’s credibility. CARCHEX has an A+ rating from the BBB.
You can get a CARCHEX extended warranty with a term length of up to 10 years or 250,000 miles. For this reason, we believe CARCHEX is the best choice for high-mileage vehicles. To learn more about CARCHEX, read our in-depth CARCHEX review. You can also compare the company to CarShield in our CARCHEX vs. CarShield review.
Conclusion: Is CarShield Legit?
CarShield is a legitimate extended warranty provider, and it’s a solid option if you’re searching for an affordable vehicle protection plan. Competitive rates and plans that last up to 300,000 miles keep the company near the top of the industry.
Is CarShield Legit?:FAQ
Does CarShield pay its claims?
CarShield claims are known to be consistently paid out to car repair shops. Some people say that CarShield is not legit because of certain situations when it does not cover damages, but these reviews typically come from drivers who do not fully understand their warranty exclusions. Your covered repairs are paid 100% after you submit your CarShield claims and pay your deductible. The administrator of your CarShield contract will pay your repair shop or dealer directly for your car repairs. As soon as you meet your deductible, CarShield will pay your covered repair claims in full.
Can CarShield be trusted?
CarShield can be trusted not to scam drivers, and our research shows it’s not a rip-off. It’s been a popular and legitimate provider for almost two decades and receives excellent reviews from customers on Google and Trustpilot.
Is CarShield a scam?
Although CarShield doesn’t have a great rating on the Better Business Bureau (BBB) website – with only 1.48 out of 5.0 stars –in our industry-wide review of the best extended car warranty companies, we determined that CarShield is certainly not a scam, gimmick or rip-off. We give CarShield a 4.3 out of 5.0-star rating.
CarShield has served warranties to thousands of customers every year across the country. Additionally, the company’s customer service reps consistently responds to negative reviews and complaints, with over 1,200 closed in the last 12 months.
While it’s true that the company does have a poor rating and a warning from the BBB, the amount of positive reviews on multiple sites also suggests that many CarShield customers are happy with their coverage. For example, the company has a good reputation on Google, with a 4.2 out of 5.0-star rating based on over 10,000 reviews.
Does Ice T really use CarShield?
Actor Ice T does really have a CarShield policy according to a few sources. However, it is also reported that CarShield paid for his policy.
Is CarShield really legit?
CarShield stands out in the auto warranty industry for its reasonable prices and range of coverage plans.
Our Methodology
Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best extended auto warranty providers.
- Industry Standing: Our team considers Better Business Bureau (BBB) ratings, availability, and years in business when giving this score.
- Coverage: Because each consumer has unique needs, it’s essential that a car warranty company offers an array of coverage options. We take into account the number of plans offered by each provider, term limits, exclusions, and additional benefits.
- Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team performs ongoing secret shopper analyses for different vehicles, mileages, warranty plans, and locations to give this rating.
- Customer Service: Reputable extended car warranty companies operate with a certain degree of care for consumers. We take into account customer reviews, BBB complaints, and the responsiveness of the customer service team.
*Data accurate at time of publication.
