Yes, CarShield really pays for covered repairs to your vehicle, as long as you have an active CarShield vehicle service contract. The exact kinds of repairs CarShield will pay for depend on the specific service contract you choose.
Why Some People Wonder Whether CarShield Really Pays
CarShield has an F rating with the Better Business Bureau (BBB) for allegedly failing to pay claims and resolve complaints. In 2020, CarShield filed a petition against the BBB alleging bias against CarShield after the BBB shifted to an A-F grading system. CarShield claimed that the new system was designed to drive BBB website traffic and to encourage businesses to buy BBB memberships. CarShield does not pay for a BBB membership and alleges that the BBB enforces a moving standard, making a better grade impossible.
Why You Might Still Consider CarShield
The total number of BBB complaints filed against CarShield represent a relatively small portion of the 1 million contracts they claim to have sold. Whether or not there is a bias against CarShield, it is a well-known, affordable company with a 4/5 average user rating on WalletHub. Thus, you should just make sure to understand everything a CarShield plan does and does not cover before purchasing one.
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.… read full answer
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.
CarShield costs at least $99 per month and up, though prices vary by state, driver, and specific vehicle. CarShield sells vehicle service plans, which are similar to extended warranties, and a plan from CarShield covers the cost of repairs to the car's systems and mechanical parts. Six different plans are available from CarShield, so drivers can choose between several levels of coverage.… read full answer
To qualify for a CarShield plan, cars must fulfill certain eligibility requirements, though the company does not disclose the exact requirements.
CarShield Plans Cover:
Plans may cover slightly different things, but this list provides a good example of CarShield coverage.
CarShield vs. Extended Warranties From Major Insurers
Although exact coverage may differ for the providers above, all of them cover the main parts or systems. These include the engine, transmission, brakes, suspension, and steering.
It’s also worth noting that mechanical breakdown insurance from a car insurance company is often a cheaper alternative to a third-party vehicle service plan or extended warranty. For more information, check out WalletHub’s guides to mechanical breakdown insurance and extended warranties.
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