Is CarShield a Scam? Or Is It Legit?
Last Updated on January 9, 2026
CarShield is a real vehicle protection company that sells vehicle service contracts (often marketed as an “extended auto warranty”) to help pay for certain covered repairs after a factory warranty ends. CarShield is legitimate, but whether it’s worth the price depends on your vehicle, the contract terms, and how likely you are to face expensive mechanical repairs.
It’s also important to understand what CarShield is not: it’s not car insurance, and it won’t pay for accident damage, theft, vandalism, or other losses that are handled through an auto policy. Coverage is limited to the parts, conditions, and procedures listed in your contract—and most plans require authorization before repairs are performed.
For additional context on the industry, the Federal Trade Commission (FTC) announced a 2024 settlement involving CarShield and its contract administrator related to advertising and telemarketing claims. Reviewing the written contract details is essential for any service contract purchase. See the FTC’s press release.
Our Rating of CarShield
4.1
out of 5
★★★★☆
Summary
Bottom line: CarShield can help manage the cost of certain covered breakdown repairs, but value depends on the written contract terms, exclusions, and authorization rules.
CarShield is a vehicle protection company that sells vehicle service contracts (often marketed as “extended auto warranties”) that may help pay for covered mechanical or electrical failures after a factory warranty ends. Coverage is not auto insurance and won’t pay for accident damage, theft, vandalism, or routine maintenance, and most repairs require prior authorization with payment governed by the contract after any deductible. Because pricing and eligibility are quote-based, it’s important to review the specific contract for covered parts, exclusions, waiting period language, and claims steps before purchasing.
Best for
- Drivers with older vehicles or vehicles no longer under factory warranty
- People who want predictable budgeting for repair risk
- Drivers who plan to keep a vehicle for several years and want repair coverage for covered breakdowns
Not ideal for
- Drivers looking for protection against accidents, theft, vandalism, or weather losses
- Shoppers who want coverage for routine maintenance, cosmetic items, or normal wear
- Anyone unwilling to follow pre-authorization and claim procedure requirements
- Our Rating of CarShield
- What Is CarShield?
- Why Buy CarShield?
- Is CarShield Legit?
- How to Request a Quote with CarShield
- CarShield Packages
- What Does CarShield Cover?
- What Else Does CarShield Cover?
- How Much Does CarShield Cost?
- What Does CarShield Not Cover?
- CarShield Waiting Period
- Final Word on CarShield
- FAQs on CarShield
What Is CarShield?
| CarShield at a Glance | What to Know Before Buying |
|---|---|
| Product type | Vehicle service contract (repair coverage for certain mechanical/electrical failures), not an insurance policy. |
| How claims work | Most repairs require prior authorization; covered repairs are paid according to the contract after your deductible (if any). |
| Best for | Drivers who want predictable budgeting for repair risk on an older vehicle or a vehicle no longer under factory warranty. |
| Not designed for | Routine maintenance, cosmetic items, normal wear, or accident-related damage. |
CarShield, founded in 2005 and based in Missouri, is best known for selling vehicle service contracts that can help cover certain repair costs for covered breakdowns. These contracts are commonly grouped under the “extended warranties” category, although the legal terms and coverage rules can differ from a manufacturer warranty.
With most service contracts, you choose a coverage tier, pay monthly or in a term, and follow the contract’s claims process when something breaks. The fine print matters: covered parts, exclusions, labor rules, deductible amount, and how approvals work can all affect real-world value.
CarShield also doesn’t replace required insurance. Drivers still need a valid auto insurance policy, and specialty vehicles may require specialty coverage as well. For example, RV owners typically need an RV insurance policy regardless of any repair contract: do you need RV insurance?
Why Buy CarShield?
CarShield is designed for people who want help managing the risk of an unexpected repair bill—especially when a factory warranty has ended. A major mechanical failure can cost thousands, and that type of expense is one reason drivers consider service contracts.
It also helps to understand the gap between auto insurance and mechanical repairs. Auto insurance is built for covered losses (like collisions), not normal breakdowns, and it’s common for insurers to deny claims that fall outside the policy’s covered events. For example, most policies won’t pay for mechanical failures like a transmission repair or a blown engine unless the damage is tied to a covered loss.
If a repair contract is being considered, it helps to compare the monthly cost to the kinds of repairs that tend to be expensive—like transmission repair or replacement—and decide whether predictable payments are worth it for your budget and risk tolerance.
| When a Service Contract May Make Sense | When It May Not Be Worth It |
|---|---|
| You plan to keep the vehicle for several years and want help budgeting for repair risk. | You can comfortably self-fund repairs with an emergency fund and prefer not to pay monthly. |
| The vehicle is out of factory warranty and you’re concerned about major system failures. | The vehicle is new or still under a strong factory warranty (overlap reduces value). |
| You want added benefits like roadside help or rental reimbursement (if included in your contract). | You already have strong roadside and rental benefits through other programs (overlap reduces value). |
Is CarShield Legit?
CarShield is a real company selling real service contracts, but “legit” doesn’t mean “covers everything.” The only reliable way to know what will be paid is to read the written contract, including the covered parts list, exclusions, and claim steps (especially authorization requirements).
It’s also reasonable to look at oversight and complaint history. In addition to reviewing contract terms, check the FTC information linked above and verify complaint patterns through third-party sources like the Better Business Bureau (BBB) profile.
Quick tip: Ask for a sample contract before paying. Read the “Exclusions,” “Waiting Period,” and “How to File a Claim” sections carefully. CarShield publishes sample contracts online, which can help you understand how the coverage actually works. View sample contracts.
| Questions to Ask Before Buying | Why It Matters |
|---|---|
| Is this contract “named component” or “exclusionary” coverage? | Coverage style affects how many parts are covered and how exclusions are applied. |
| What is the deductible, and is it per visit or per repair? | A low monthly price can be offset by frequent deductibles if multiple visits occur. |
| What labor rate and diagnostics rules apply? | Some contracts limit labor rates or exclude certain diagnostic charges. |
| Do repairs require pre-authorization? | Unauthorized repairs are a common reason claims are denied. |
| Which exclusions are most likely to apply to this vehicle? | Wear, maintenance issues, and pre-existing problems are frequently excluded in service contracts. |
| What is the cancellation and refund policy? | Refund timing and pro-rated rules affect your financial risk if you cancel later. |
How to Request a Quote with CarShield
CarShield pricing and eligibility are quote-based, so getting a written quote (and reviewing the contract that matches that quote) is the most practical next step.
- Request a quote. Provide the year, make, model, mileage, and your zip code. CarShield offers online quotes and phone quotes; start here: CarShield.com.
- Confirm the plan type and deductible. Make sure you know the coverage tier, deductible amount, and whether the deductible applies per repair visit.
- Review the contract terms. Focus on exclusions, claim authorization steps, waiting period language, and any labor or mileage limits.
- Ask about claims procedures. Confirm how authorizations work and what happens if you prefer a specific repair facility.
CarShield Packages
CarShield advertises multiple coverage tiers, generally ranging from broad coverage down to limited powertrain coverage. Plan names and exact terms can vary by vehicle and state, so the contract you receive is the final authority.
| Package | Coverage Level | Examples of What It’s Often Built For |
|---|---|---|
| Diamond | Best/most comprehensive | Broad protection similar in concept to a factory warranty; often includes major systems and additional components like the fuel pump and fuel injectors (subject to contract terms and exclusions). |
| Platinum | Extensive | Comprehensive coverage for higher-mileage vehicles, often including key mechanical systems plus items like the air conditioning system (coverage depends on the contract and cause of failure). |
| Gold Select | Powertrain Plus | Mid-tier coverage often focused on major systems plus select additional components like the alternator and cooling system components like the radiator, depending on the contract. |
| Silver | Powertrain | Basic protection focused on core powertrain components (engine, transmission, and related lubricated parts), with fewer add-ons. |
| Aluminum | Specialty (electrical/computer) | Often aimed at electrical and computer-related problems (modules, electronics, certain tech features), depending on contract details. |
| Motorcycle & ATV | Specialty vehicle contracts | Coverage designed for specialty vehicles. Riders still need proper insurance; for cost context, see is it cheaper to insure a motorcycle or a car? |
What Does CarShield Cover?
CarShield coverage depends on the package and the contract language. Most plans are structured around a covered parts list (or an exclusionary format where most parts are covered unless excluded), plus requirements that determine whether a repair is eligible—such as authorization rules, maintenance requirements, and exclusions.
Across many service contract tiers, the most common focus is on expensive “keep-the-car-moving” systems like the engine and transmission, along with related drivetrain parts. For example, some plans include drivetrain components like the drive axle, but coverage always depends on the specific contract and the cause of failure.
What Else Does CarShield Cover?
Many service contracts include additional benefits that can be useful even if you never file a major repair claim. These benefits vary by contract, so confirm the details in writing.
| Benefit | What It Typically Helps With | Notes |
|---|---|---|
| Emergency roadside assistance | Common roadside events such as lockouts, fuel delivery, and towing (limits vary). | Roadside benefits may overlap with roadside assistance coverage sold by auto insurers or memberships like AAA. Compare benefits to avoid paying twice. |
| Rental car reimbursement | Helps pay for a rental car if a covered repair leaves the vehicle in the shop. | This is similar in concept to rental reimbursement coverage on auto policies, but the rules and limits are contract-specific. |
| Trip interruption | Helps with certain travel-related costs if a covered breakdown occurs far from home. | Confirm eligible expenses and caps; compare to common rules for emergency travel expenses. |
How Much Does CarShield Cost?
CarShield cost depends on your specific vehicle (age, make/model, mileage, condition), the plan tier you choose, contract term length, and deductible amount. Many customers pay monthly, but pricing is individualized—so a quote is the only accurate way to estimate cost.
To evaluate value, compare the total monthly cost plus any deductible against your realistic repair risk. (Deductibles are a common feature in many types of coverage; here’s a refresher on how deductibles generally work: car insurance deductibles explained.)
What Does CarShield Not Cover?
Like all service contracts, CarShield does not cover every problem on every vehicle. Exclusions and eligibility requirements are a major reason customers are sometimes surprised at claim outcomes, so it’s worth reviewing these sections closely.
| Common Exclusions | What This Usually Means |
|---|---|
| Unauthorized repairs | Repairs performed without required authorization or without following claims procedures may be denied. |
| Wear and tear / maintenance-related issues | Many contracts exclude issues tied to wear and tear or problems caused by missed routine maintenance. |
| Accident damage and other covered losses | Damage from collisions, theft, vandalism, weather, and similar events is typically handled by auto insurance, not a service contract. |
| Modifications and non-standard equipment | Aftermarket changes and certain upgrades—such as modifications—may be excluded or limited. |
| Misuse and off-road/racing | Damage caused by misuse, racing, or off-road driving is commonly excluded. |
| Pre-existing issues | Problems that existed before the contract effective date are typically excluded. |
CarShield Waiting Period
Many service contracts include a waiting period before breakdown coverage begins. The waiting period is usually defined in both time and mileage terms and is intended to reduce the likelihood of claims for problems that existed before coverage started.
The exact waiting period can vary by plan and contract. Always confirm your waiting period on your declarations page and keep the document for your records.
Final Word on CarShield
CarShield is a well-known vehicle service contract provider, and the product can be helpful for drivers who want to budget for the risk of covered mechanical repairs. The value comes down to the details: plan tier, exclusions, claim approval rules, waiting period, and whether the monthly cost makes sense compared to your vehicle’s repair risk.
The most reliable way to decide is to compare a quote to your alternatives, read the contract before paying, and make sure the plan fills a real gap in protection (instead of duplicating benefits you already have).
Contact CarShield to request a quote, confirm plan details, and ask for the contract language that applies to your vehicle and state.
