CARCHEX vs CarShield

CarShield vs. Carchex

CarShield and CARCHEX are two leading providers of vehicle service contracts (VSCs) that help keep your car running smoothly by offering extended warranty coverage for major parts and services, even for high-mileage vehicles. While CARCHEX is an older company, having been founded in 1999, they only began selling extended auto warranty protection in 2004. On the other hand, CarShield was formed in 2005 as an auto service plan provider. Both companies offer complimentary services with their plans, such as roadside assistance, trip interruption coverage, and alternative transportation or rental car reimbursements. While there are similarities between them, there are some key differences that may sway your decision one way or the other.

Both companies act as brokers for third-party VSC administrators that handle claims, and they both use American Auto Shield for some of their contracts. CARCHEX is transparent online about all eight of the VSC administrators they work with and provides direct numbers to contact them in case of a breakdown. We note that CarShield partners with American Auto Shield and Liberty STF on their website, but the company may handle claims through their own number. 

CarShield offers eight plans online, which is more than CARCHEX's five plans. Also, while CarShield has specialized coverage policies for electrical cars as well as motorcycles and ATVs, CARCHEX does not. However, both companies have three levels of inclusionary coverage, including a basic powertrain plan as well as an exclusionary "bumper-to-bumper" protection plan that is similar to your factory warranty coverage. If your car's warranty only covers powertrain parts, they both offer supplementary coverage for the other parts. They both offer their plans on a monthly basis as well as for specific contract term periods. 

Neither provider shares pricing online, requiring you to contact them for specialized quotes. Customers can pay monthly installments for term contracts, although some may choose to pay the full amount as a one-time payment. We have found that monthly costs for CarShield can fall within the $99.99 to $129.99 range, and some customers are able to get discounts. CARCHEX costs may be higher, falling between $100 and $150 per month. Both providers' costs can reach upwards of $200 depending on many criteria, however. CARCHEX sells their plans in all 50 states, including California, whereas CarShield does not.

With regards to customer satisfaction, both companies have their share of praise and criticism. CARCHEX tends to do better with the Better Business Bureau (BBB), with which they are accredited and hold an A+ rating, while CarShield is not BBB-accredited and has a D rating there. It should be noted that they both have low BBB reviewer scores and that CarShield is currently suing the BBB for what they claim is bias against them. They both have better reviews elsewhere that praise their customer support and quick claims, although some reviews say the opposite. They both tend to respond to all complaints, often to customer satisfaction.

Both CarShield and CARCHEX are reputable and full-featured companies, and your choice between them will depend on your location and requirements. We recommend contacting them for quotes and coverage information, then deciding from there!
 

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