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CarShield Reviews: Is CarShield Worth it?
Considering CarShield’s extended car warranty plan? Before making a decision, it’s crucial to thoroughly review its prices, ratings, credentials, and customer complaints. CarShield’s reputation is a mixed bag, so weighing the pros and cons is important. On Trustpilot.com, the company has amassed over 38,000 customer reviews, boasting an impressive average rating of 4/5.
However, on the Better Business Bureau (BBB), CarShield’s average customer review rating is a disappointing 1/5, based on feedback from over 2,242 customers. While this initial poor rating may raise concerns, it’s worth noting that CarShield is currently engaged in a lawsuit against the BBB, alleging bias in the negative review. To provide the answers you need, industry expert Chris Teague will delve into a comprehensive review.
Extended warranty companies, including CarShield and Carchex, reside in a grey area of divided opinions. Depending on who you ask, you may come across glowing reviews or harsh criticism. You can turn to our 2023 list for the top 3 Best Extended Car Warranties, where we also share category winners: high-mileage plans, cheapest option, and best warranty for used vehicles.
CarShield Extended Warranty Pros and Cons
Every company has its ups and downs, so let’s take a closer look at how CarShield shakes out in the field.
CarShield Cost: Reasonable plan pricing.
Broad catalog of coverage options.
Convenient add-ons, such as roadside assistance.
CarShield’s customer reviews are all over the map.
Prospective customers must give up personal information for a quote.
No adjustable deductible.
CarShield is a Missouri-based extended warranty company that has been in business for 18 years. Its offerings range from basic powertrain coverage to more comprehensive options, and the company includes several add-on benefits with all plans, including roadside assistance, rental car assistance, and towing.
CarShield notes that its coverage options are affordable, starting at $99 per month, and the company touts its easy startup process as a significant selling point. Beyond its auto coverage options, CarShield offers motorcycle plans, and buyers can add coverage for additional items. Coverage is available for vehicles with up to 300,000 miles, so you can sign up for CarShield with a car that is already quite used.
Though it has been in business for almost two decades, CarShield’s experience hasn’t saved it from a sea of negative customer reviews. The Better Business Bureau does not accredit the company, and its scores leave much to be desired from a customer satisfaction standpoint. Many customers report being charged for services they did not receive and that the company was unresponsive or resistant to help when called.
CarShield Process to Get Started
Some extended warranty companies let prospective customers run through the entire setup process online, but CarShield is not one of them. You’ll have to pick up the phone and give up some personal information to get a CarShield warranty, and you’ll need to listen carefully to the sales representative to fully understand what you’re getting. It’s also less than ideal if you’re planning to shop around, as you’ll have given your phone number and email address to CarShield before knowing if it’s a company you want to work with. On the upside, they don’t spam call after the fact, but you will receive a few emails.
If you decide that CarShield isn’t for you, you have 30 days to get a full refund if you haven’t used your coverage. If you choose to sell the car, you can transfer the coverage to a buyer, but some paperwork is involved, so it’s important to ensure you understand what you need to do.
Once you’ve signed up for coverage, CarShield requires a 20-day/500-mile waiting period before you can use your warranty. This is to prevent you from getting coverage for a vehicle that has pre-existing conditions. On the upside, you’ll get quite a few great add-on benefits, including roadside assistance, price lock for coverage costs, trip interruption coverage, and rental car reimbursement.
CarShield Extended Car Warranty Claims and Process
If you’re a CarShield customer and need a repair, you’ve got a couple of options to file a claim with the company. CarShield offers a phone line and an online portal to file a claim, and you can check the status of a claim using the same phone number. Filing a claim will not impact your monthly rates, and the company will communicate directly with your shop to determine your vehicle’s coverage.
If your vehicle is in the shop and approved for at least four hours of work, you’re eligible for rental car coverage under your CarShield plan. The company limits rental cars of similar types to those being repaired for up to $100 per day. Coverage runs for up to seven days unless the vehicle needs a complete engine and transmission replacement, in which case it covers a rental for up to two weeks. Carshield may also reimburse you for up to $60 per day of rideshare costs.
Reasons CarShield Denies Claims
CarShield is not alone in limiting what it covers with extended warranty plans, and several things can cause your warranty claim to be denied. Modifying your covered vehicle is a bad idea, not just because it can lead to reliability issues but also because it could void your extended warranty. CarShield also notes that breakdowns caused by racing, off-roading, and other motorsports events are not covered, even if damage occurred before your vehicle ownership.
CarShield also said it would not cover damage caused by neglect or abuse, so you’re required to keep up with basic maintenance as part of your warranty contract. Extended warranties are not insurance and do not cover repairs caused by wrecks, acts of nature, vandalism, or theft. You also can’t use your vehicle for commercial purposes like deliveries or rideshare services. Other companies do offer rideshare coverage, however, so you’ll be able to find a warranty if you drive for Uber or Lyft.
Common wear items aren’t covered by any vehicle warranty, including factory coverage. That includes tires, brakes, oil, windshield wipers, and other things that are considered consumable by the vehicle. CarShield also includes lithium-ion and hybrid batteries in this category, so it’s important to understand your coverage if you own an EV or a hybrid with a massively expensive battery underneath.
You’ll also want to ensure that your vehicle does not have a branded title for being rebuilt or salvaged, as it will not be covered. Finally, and this is tricky, some components aren’t covered if they haven’t completely failed. The slow decline that some parts experience, such as a slipping transmission, won’t be covered unless it puts the component outside of the safe operating parameters set in place by the manufacturer.
CarShield Costs and Prices
If you’re concerned about CarShield’s business practices, its prices may help alleviate some of that fear. The company offers six protection plans that cover everything from basic powertrain issues to a near-comprehensive list of vehicle systems and components. Most CarShield plans average in the low-$100 range per month, with more expensive plans reaching $150 for more comprehensive coverage. The company charges a $100 deductible, though you may find plans with a different or lower deductible, and plans come with unlimited mileage.
Though its monthly payment options are reasonable, others have even more flexible options and benefits. Some warranty providers let customers choose their deductibles or forego paying the deductible altogether. However, it’s important to note that a low or $0 deductible generally comes with a higher monthly payment.
CarShield Warranty Customer Reviews
The Better Business Bureau currently has 2,242 customer reviews on CarShield, with an average score of 1.34 out of 5. That said, company reviews on other sites are far more positive, with some climbing as high as 4.5 out of 5. Negative reviews focus on the company’s speed of operation and willingness to cover claims. Many people state that their experience with the company was painfully slow and note that its claims adjusters sometimes take days to assess a vehicle before deciding on service.
To be fair, some negative reviews stem from customers misunderstanding their contracts and what is covered. Many were surprised to have to pay for parts of a repair, even though a part of their policy covered some of it. Others were upset to find that they hadn’t completed the startup paperwork completely and were missing key details like initial mileage that caused their claims to be denied.
Should You Buy a CarShield Warranty?
Even though CarShield operates in an industry already on the precipice of completely losing the public’s trust, most of its competitors are legitimate, well-reviewed companies. CarShield’s somewhat spotty record with customer reviews is significant enough for us to recommend at least shopping around before making a decision on the company. Your peace of mind is important, but just having coverage isn’t enough. It’s also important to look for a company that meets your other expectations, such as answering the phone when you call and addressing your concerns about pricing and coverage availability.
That word of caution becomes even more important when considering the extreme expenses involved with some things covered by an extended vehicle warranty. Would you want to be on the hook for a $20,000 engine replacement or multiple thousands of dollars for a transmission rebuild? Having said that, would you want to think you were covered for such items only to find out at the repair shop that your warranty provider backed out of paying for the service? Obviously, CarShield is obligated to repair the items on your service contract. Still, there are so many variables involved with car maintenance issues that it’s best to have a firm handle on what you’re getting, what’s covered, and how much extra you’ll be expected to pay.
Though there are several positive reviews for CarShield online, the number of negative reviews and concerns on the BBB website is enough to warrant a look at other companies.
CarChex is a fantastic alternative that offers solid customer reviews, several coverage options, and responsive, transparent phone reps. Endurance has also garnered a sizeable following with the same practices and is often referred to as the go-to company among extended warranty providers.
CarShield Extended Warranty Frequently Asked Questions
You probably have some questions. Let’s knock them down with some answers.
Frequently Asked Questions
Is CarShield a legitimate company?
Despite receiving a high number of negative reviews, CarShield is indeed a legitimate company that offers genuine coverage plans. Additionally, it is worth noting that CarShield has a favorable rating on Glassdoor, with a score of 4.1/5 based on over 265 employee reviews.
Moreover, the CEO of CarShield, Mark Travis, has an impressive 97% approval rating on Glassdoor, indicating high satisfaction among the company’s employees.
CarShield was founded in 2005 and currently employs over 1,000 individuals.
Does CarShield pay its claims?
CarShield does pay its claims, though it’s important to note that it has an extensive list of reasons why a claim might be denied, so it’s good to review the plan information before signing up.
CarShield has also received over 3,535 customer complaints at the BBB.
Customers have alleged misleading sales practices, failure to cover repairs, inadequate explanations of coverage terms, policy cancellation issues, delays in processing claims, difficulty finding authorized repair shops, and poor customer service.
Some customers have demanded refunds and threatened to file complaints with consumer protection agencies and the attorney general.
CarShield has responded to these complaints by offering refunds on a case-by-case basis and filing a lawsuit against the Better Business Bureau for alleged bias. These complaints against CarShield highlight the importance of careful consideration when choosing a vehicle service contract provider.
Before purchasing an extended car warranty service from CarShield, be sure to review the contract carefully. Ask questions and get answers documented. You can even email the company your questions to ensure they respond with the answers in writing by email rather than by phone call.
How long after signing up can I use CarShield?
CarShield requires a 20-day/500-mile waiting period to make sure your vehicle has no pre-existing conditions at the beginning of coverage.
Can I cancel CarShield at any time?
Yes, you can cancel your CarShield plan anytime, but a full refund is only available for the first 30 days and only if you haven’t used the warranty.
Does CarShield cover cars over 10 years old?
Yes. CarShield is a solid option for owners of older models, as it offers coverage for high-mileage vehicles.
Is there a class action suit against CarShield?
There is no publically listed lawsuit filed against CarShield. However, CarShield did sue the Better Business Bureau (BBB) for alleged bias.
For many years CarShield has attempted to work with the BBB to respond to and resolve customer complaints and negative reviews. BBB has refused to work with CarShield, automatically giving them an F rating. On numerous occasions, BBB has failed to attend scheduled meetings with CarShield.
Additionally, CarShield claims they lost over $1,00,000 in revenue from clients cancelling their extended car warranty contract after seeing the BBB’s misleading report, illustrating the company’s negative rating.
To see the full lawsuit CarShield filed against BBB visit https://bbbbias.com/.
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