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Uncovering the Truth: Is CarShield Legit?

Uncovering the Truth: Is CarShield Legit?Uncovering the Truth: Is CarShield Legit?

Updated: October 1st, 2023

Are you considering purchasing an extended warranty for your vehicle but unsure of which provider to choose? If you're looking at top providers with a lot of exposure, then you'll likely consider CarShield. But you may have heard some conflicting information about them that leaves you wondering: are they the best choice? To help you decide, we will examine this company further and determine if CarShield is a worthwhile provider that lives up to its claims.

We will delve into the company's background, touch on their coverage plans, and look at their customer reviews to provide you with a good overall assessment. We will strive to examine every aspect of CarShield's offerings in an unbiased way, separating fact from fiction, to help you make an informed decision about CarShield's legitimacy in the automotive warranty market.


What Is CarShield?

CarShield is a leading extended car warranty provider for vehicle owners in the United States. Established in 2005 and based in St. Peters, Missouri, they are one of their industry's most popular vehicle service contract (VSC) providers, offering warranty protection beyond the manufacturer's warranty. CarShield aims to provide peace of mind to car owners by ensuring that they are not burdened with hefty repair bills. They work as brokers to find you appropriate coverage from third-party VSC administrators like American Auto Shield. In doing so, they offer a wide range of coverage options with flexible payment plans, thus catering to the diverse needs of car owners across the country.

CarShield's extended warranty plans are designed to cover various components of your vehicle, including the engine, transmission, electrical system, and more. Whether you own a new or used car, CarShield has options for you. The company collaborates with a large network of repair shops, the Shield Repair Network, but also allows customers to choose their preferred repair facilities as long as they're certified by the National Institute for Automotive Service Excellence (ASE®). This flexibility ensures that you can get your car repaired conveniently, no matter where you are.

Despite the company's extensive selection of warranties, concerns about its legitimacy have arisen, leading many to question whether or not CarShield is trustworthy. To determine the legitimacy of CarShield, we conducted thorough research and reviewed customer feedback, and the following is what we found.

How Does CarShield Work?

CarShield's extended warranty plans act as a form of insurance against unexpected vehicle repairs. When you purchase a CarShield warranty, you are essentially protecting yourself from the financial burden of costly repairs due to car breakdowns. However, this is different from a car insurance policy, which CarShield's plans do not replace, because warranty plans won't cover accidents. Instead, they are designed to supplement your auto insurance by paying for repairs that result from mechanical or electrical component failures.

CarShield plans are designed to cover different components of your vehicle, depending on the plan you choose. You can opt to purchase coverage on either a monthly or term contract, which covers you for a certain amount of time or driven miles. When a breakdown occurs and you need repairs, you would file a claim and pay a predetermined deductible. Then, if the parts repaired are covered by your contract and do not exceed its limits, CarShield would pay for the rest of the costs, which could save you hundreds or even thousands of dollars in car repair expenses. And with the CarShield app, you can easily manage your coverage and access roadside assistance with just a few taps on your phone. The app also provides GPS tracking to help locate your vehicle in case of theft or other emergencies.

Of course, it's important to note that CarShield's warranties, like those of all car warranty companies, have certain limitations and exclusions. Therefore, it's essential to read the terms and conditions specified in your contract, as well as all the fine print, in order to understand what is covered and what is not.

CarShield's Coverage & Plans

CarShield offers a range of coverage plans to suit different needs and budgets. The company provides various levels of coverage, from basic powertrain plans to comprehensive bumper-to-bumper plans. Let's take a closer look at some of the coverage options CarShield offers:

  • Diamond coverage: The Diamond plan provides coverage similar to a factory warranty and is meant to cover most major parts under the hood of a fuel-engine vehicle. In fact, as an exclusionary plan, its contract does not list the parts it covers, but rather only what it excludes from protection
  • Platinum coverage: The Platinum plan is a great option for high-mileage vehicles that cannot qualify for the bumper-to-bumper coverage of the Diamond plan because it covers the greatest number of stated components. The components covered fall within the categories of the fuel engine, transmission, drive axle, transfer unit, cooling system, electrical, steering, AC, suspension, brakes, high-tech electronics, fuel system, audio system, emissions, and turbocharger or supercharger
  • Gold coverage: The Gold plan is a powertrain plus policy that offers intermediate coverage for your car's fuel engine, transmission, drive axle, transfer unit, AC, electrical, cooling system, fuel system, and turbocharger or supercharger components
  • Silver coverage: The Silver plan is a basic powertrain policy that offers the most budget-friendly coverage of the vehicle's most important parts, which are comprised of the fuel engine, transmission, transfer unit, and drive axle
  • Aluminum coverage: The Aluminum plan covers mostly the electrical and computer-centric parts of your vehicle and not the powertrain parts. These parts are the cooling system, electrical, steering, AC, suspension, brakes, fuel system, audio systems, high-tech electronics, and turbochargers or superchargers
  • Special Vehicle Coverage: The provider offers four specialized plans for electric vehicles (EVs), motorcycles, and ATVs because their main plans will not suit many of those vehicles' needs

CarShield offers additional benefits within their plans, such as roadside assistance, rental car reimbursement, and trip interruption coverage. These additional services can provide added convenience when you are faced with unexpected breakdowns or repairs. You can go to CarShield’s website to find sample contracts for all their plans, which you should read through before deciding to purchase.

This provider does not list their warranty costs online, but you can expect to pay between $99 and $139 a month for coverage. Your unique costs could be less or more depending on your budget and contract type, and CarShield will consider many aspects when coming up with a quote for you, including your location and your car's make and model, age, and mileage.

CarShield Customer Reviews & Reputation

When considering any product or service, it's essential to consider other customers' experiences. Customer reviews can provide valuable insights into the quality and reliability of a company's offerings. CarShield has received mixed reviews online from customers, with some sharing positive experiences and others detailing negative ones interacting with the provider and their services.

On the one hand, the overly positive customer reviews found on Trustpilot, where the provider has a 4 out of 5 score, and on Google suggest that CarShield is a reliable provider of extended auto warranties. On the other hand, they have a D rating with the Better Business Bureau and are not accredited by them. In fact, the BBB has placed the provider on alert because of the volume of complaints against them. CarShield is currently disputing their treatment by the BBB in court, and it must be noted that they do respond to all complaints there with the intention of resolving them.

Many customers are satisfied with CarShield's coverage and claim process, praising the company for providing financial protection and peace of mind. These customers often mention how CarShield saved them from expensive repair bills and allowed them to get their vehicles back on the road quickly. Reviewers also lauded CarShield's relative affordability and the fact that they sometimes apply discounts to payments because of some customers' budgetary restrictions.

However, there are also negative reviews from customers who have had less favorable experiences with CarShield. Some customers have reported difficulties in getting their claims approved or delays in the claims process. Some individuals have expressed that particular repairs were not included in their plans, even though they anticipated they would be covered. While this negative feedback is not representative of all CarShield customers, it does serve as a reminder to carefully review the fine print of your specific plan to understand your specific coverage details before making a purchase.

Common complaints and issues with CarShield

Even though CarShield has a sizable customer base and numerous positive reviews, it's important to note some of the typical issues and complaints that customers have brought up. One of the most common complaints is about the sales tactics used by CarShield representatives. Some customers have reported receiving persistent phone calls and emails urging them to purchase a warranty, even after expressing disinterest. This aggressive marketing approach has left a negative impression on some potential customers, leading to criticisms of CarShield's business practices.

The limited coverage for some repairs is another common complaint from customers. Despite having an extended warranty, some customers have found that specific repairs are not covered, leaving them to bear the full cost of the repair. Because of this, we once again stress the need to review your contract, which will spell out the limit of liability for total costs covered by your coverage, among other limitations and exclusions that you will find there.

Is CarShield a Scam? Analyzing the Facts

CarShield is a reputable company that has a large customer base and many positive reviews. They've covered over two million vehicles, and plenty of satisfied customers can attest to the legitimacy of their services. Additionally, the company has received multiple awards for its exceptional services, including the "Glassdoor 2021 Best Places to Work" award. CarShield's extensive industry experience, affordable rates, and commitment to quality all demonstrate their reliability.

CarShield has paid out claims worth more than $1 billion, and many customers have shared positive experiences regarding their coverage and customer service team. However, there have been a number of complaints and negative reviews, specifically related to the Carshield claims process and limited coverage, but the provider does make an effort to answer all their complaints and, in so doing, work to restore their customers' high satisfaction levels.

Should You Choose CarShield?

Ultimately, it's up to you to decide if CarShield is the right fit for you and your car. Keep in mind that without a warranty, you might have to pay $2,000 to $5,000 or more for a significant repair. A CarShield contract is affordable and gives you the extra services you will need to get through a major auto repair, thus saving you thousands of dollars in the long run.

Deciding whether to choose CarShield as your extended warranty provider depends on your individual needs and preferences. CarShield has a significant customer base, positive reviews, and a wide range of coverage options. And not only do they cover standard gas- or diesel-engine cars, but also other vehicle types like EVs, ATVs, and motorcycles. There is a good chance that CarShield will cover your auto protection needs.

Final Thoughts: Is CarShield Legit?

CarShield is indeed a legit company that has been selling extensive coverage for almost two decades and has a great industry reputation. They are one of the largest vehicle service contract companies out there and are a solid option to choose to purchase your warranty from. That said, it is still very natural for you to feel skeptical because protecting your car is a serious matter that should not be taken lightly. We recommend getting a free quote from the provider using the online form on CarShield's website to see if they offer a competitive price for the extended warranty coverage you need.

If some of the negative feedback you read leaves you hesitant, compare CarShield with other providers to ensure that you find the best coverage and value for your vehicle. You can read more about the other top auto warranty providers by visiting our auto warranty reviews page, where you'll also find our CarShield review.

Remember that an extended warranty can provide valuable financial protection, but choosing a provider that meets your specific needs is important. Whether you choose CarShield or explore alternatives, conducting thorough research and considering your individual requirements will help you make an informed decision.

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