No, CarShield is not a scam or a rip-off, but it is a below-average company. CarShield is a legitimate company that has been providing vehicle service contracts for over 16 years and has earned a 4/5 rating from the consumer review on WalletHub, yet it has a history of complaints reported to the Better Business Bureau.
Why CarShield Isn’t a Rip-Off
- 5 levels of protection plans, plus a motorcycle and ATV coverage plan and a roadside assistance program
- Prices starting at $99 per month
- Sample policies on their website so potential customers know what is included before they buy
- Great reviews from customers on TrustPilot and WalletHub
Why CarShield May Be Right For You
CarShield offers vehicle service contracts – better known as extended warranties – that are designed to cover car repair costs stemming from mechanical issues. They offer several different plans, with prices starting at $99 per month. In contrast, many mechanical issues can cost thousands to repair. For example, transmission repairs can range from $300 to over $1,500.
Most other extended warranties require long-term commitments. For example, Carchex contracts range from 12 months to 84 months. So, if you are looking for short-term coverage, the monthly CarShield option may be right for you. Just make sure you understand everything that their plan does and does not cover before making a decision.
Alternatives to CarShield
Considering the numerous complaints against them through the BBB, you may find that a better option is putting the money you would have spent on an extended warranty into a savings account every month. Then, if you need to pay for a repair, you can use the money you have stored away.
Another alternative is to consider buying mechanical breakdown insurance (MBI) from a car insurance company. MBI covers the major systems in your car, from engines to air conditioning, and only costs about $100 a year. However, not all insurance companies offer MBI, so ask your insurer if it is available to you.
To learn more, check out WalletHub’s guide to extended warranties.