Is CarShield a Scam?

If you’re thinking of using CarShield, you need to know: Is CarShield a scam? 

Below, we explain whether CarShield is a scam and discuss some steps you can take to improve your safety with this company. 

What Is CarShield?

CarShield is a provider of vehicle service contracts and extended warranties.

The company has various plans for different vehicle types and coverage needs. These plans can include protection for major components such as the engine, transmission, electrical systems, and more.

Customers can choose coverage levels that best fit their individual needs and budgets, ensuring that drivers only pay for the services they require.

CarShield says it partners with a vast network of trusted repair shops and trained technicians. In case of a breakdown or repair need, CarShield administrators facilitate the repair process by getting the vehicle into a shop and handling the covered repair costs. 

Is CarShield a Scam?

It’s hard to say. 

According to Car Talk, CarShield is a popular choice in the industry. 

However, Car Talk experts say they “found a few things about CarShield that makes us take a step back and recommend proceeding with caution. Many of their reviews and ratings are troubling.”  

While Car Talk lists some CarShield pros (pricing set at one monthly fee, towing and roadside assistance, multiple plans available, etc.), the cons, even though fewer, seem to outweigh these.

The cons are:

• Very poor ratings on some review websites. 
• Better Business Bureau warning.
• An alert warning on CarShield’s own contact page about long wait times.

Car Talk says that the long-term costs of CarShield are high, so monthly payments can accumulate to substantial amounts over time (e.g., $4,680 over three years), which may outweigh potential repair savings.

As a result, Car Talk recommends looking at CarShield alternatives. 

On Consumer Affairs, CarShield gets a 4.0 out of a 5.0-star rating (from 9,407 reviews). Most recent reviews (i.e., all the reviews on the first page) are 1.0-star. 

Feedback on Reddit about CarShield is not great, either. 

Among common complaints about CarShield is that they decline coverage and are slow to provide reimbursements. 

In one example, a customer purchased a CarShield plan for her 2009 GMC Acadia, paying approximately $99 monthly (totaling nearly $3,000). When her transmission failed, CarShield denied coverage, citing that the vehicle’s odometer had been tampered with to appear below 100,000 miles, a condition not disclosed at the time of purchase. 

The customer was left to pay $2,500 out-of-pocket and was denied a refund for her payments, highlighting deceptive sales practices that misrepresented the extent of coverage.

Complaining to the Better Business Bureau seems to help. 

In 2024, the Federal Trade Commission (FTC) filed a complaint against CarShield for deceptive advertising practices related to its vehicle service contracts. 

The FTC said that CarShield misled consumers by overstating coverage benefits, falsely claiming that customers could use their preferred repair shops, and using misleading celebrity endorsements. 

As part of a proposed $10 million settlement, CarShield must cease these misleading practices and comply with stricter advertising and telemarketing regulations for up to ten years. 

Other online reviews (like this one from cars.com) point out that the complaints against CarShield are “relatively few” compared to the number of contracts (1,118,000+) sold. 

Safety

In its privacy policy, CarShield says it uses “electronic and physical security” to keep your data secure but does not go into detail. 

Privacy 

In its privacy policy, CarShield outlines the information it collects, for what purposes, and with whom it shares it. 

It may collect personal information (e.g., name, phone number, address, etc.), internet and electronic activity (e.g., browsing history and interactions with websites, apps, and advertisements), commercial information (e.g., products or services purchased), biometric information (data related to physical or behavioral characteristics), protected classification characteristics, geolocation data, multimedia information, professional or employment-related information, education information, and payment information. It may also collect non-personal information. 

CarShield collects this kind of data to provide and improve its services, process transactions and manage accounts, personalize user experience, and communicate with customers about their services and offers. 

It says it may share your information with third parties to allow them to provide you with information about their products and services. 

Some people noted that even though they canceled CarShield years ago, they continue to get emails, phone calls, and letters from them.

So, Should You Use CarShield?

Maybe not, given the significant number of negative reviews, regulatory actions, and reported customer service issues. 

You are probably better off looking at alternative extended warranty providers with stronger reputations and more positive customer feedback to ensure you receive reliable and trustworthy coverage for your vehicle.

If you decide to go with CarShield, take precautions (see the next section). 

How to Use CarShield Safely

Here are some tips for a safer experience with CarShield. 

• Compare it with alternatives: Before choosing CarShield, compare its plans with those of other extended warranty providers.
• Choose the right plan. Select a plan that best fits your vehicle’s needs and your budget. Ensure it covers the most critical components of your car.
• Understand coverage. Carefully review the details of your chosen CarShield plan to know exactly what is covered and what is excluded. Pay attention to sections listing limitations and exclusions.
• Provide accurate information about your vehicle. Doing so can help you avoid issues with claims later on.
• Maintain records. Keep thorough maintenance records to prove that your vehicle has been properly maintained to avoid claim denials due to neglect.
• Track payments. Regularly check your accounts to ensure your monthly premiums are accurate and there are no unauthorized charges.
• Stay updated. Keep up-to-date with any changes in CarShield’s policies or plans that may affect your coverage.
• Document customer service interactions. Keep records of all communications with customer service.