CarShield Extended Warranty Review and Pricing 2024

Who It’s Good For

• New car owners who want to keep their vehicles in good, drivable condition without having to worry about large out-of-pocket expenses
• Drivers who are planning for emergencies and want roadside assistance, towing, and rental car coverage options
• Drivers who are on a budget and are looking for temporary, low-cost coverage

Who It’s Not Good For

• People who own used cars or cars with high mileage
• Drivers of cars with preexisting conditions
• People who need stellar customer service

Eligible

• Most cars, trucks, crossovers, and SUVs
• New and used cars
• Vehicles with fewer than 300,000 miles

Not Eligible

• Cars with over 300,000 miles
• Cars in California
• Cars with preexisting mechanical issues
• Cars that have been declared “lemons”
• Cars with modifications to the engine, transmission, drive axle, frame, suspension, emissions, or exhaust

The Buying Process

I can buy an extended warranty from CarShield over the phone, but I preferred to start the quote process online by filling out a form on the company’s website at https://carshield.com/freequote. CarShield makes it very easy to get a quote for vehicle coverage, as long as I had information  like my vehicle’s year, mileage, make, and model. However, once I filled out the information and submitted it, I got called instead of getting shown or emailed a quote. If you prefer a completely online process, check out Endurance Warranty, which doesn’t bother you with phone calls.

Waiting Period

CarShield’s waiting period for coverage is 20 days or 500 miles after I purchase my plan. This policy is designed to protect CarShield from a needed repair that I knew about prior to purchasing coverage (not that I would ever conceal information, obviously!) When I sign up with CarShield, representatives may ask for an assessment of my car and note any problems they find with it. Other extended warranties I’ve seen have a 30-day waiting period, so 20 days is pretty good all things considered.

Transfer Policy

If I were to sell my vehicle while it is still under a CarShield warranty, I could transfer the policy to the new owner. To transfer my policy to a new owner, I would need to have the following materials ready:

• Proof of the ownership change, such as a bill of sale, registration, or title
• An administrative processing fee of $50
• A completed transfer application (available upon request from CarShield)
• The odometer reading at the time of the ownership transfer

CarShield Plans

CarShield plans begin at $99 per month, but actual pricing varies based on your vehicle’s make, model year, and other factors (more on that below). CarShield offers five levels of protection plans, as well as a motorcycle and ATV coverage plan and a roadside assistance program.¹

What’s Covered

In addition to the coverage mentioned above, CarShield plans may include the following:

• Rental car reimbursement: If you need a rental car while your vehicle is being serviced for more than four hours, CarShield will reimburse you $100 per day, for up to seven days total, or 14 days if you need a full replacement of your transmission and engine. You can also apply it to rideshares with Uber and Lyft for up to $50 per day, including tips.
• Trip interruption reimbursement: If your vehicle breaks down 100 miles or more from home and you need to leave it at a repair facility overnight, CarShield will reimburse your hotel and restaurant expenses up to $125 per day for up to four days, with a maximum benefit of $500 per occurrence.
• 24/7 roadside assistance: CarShield roadside assistance covers towing, tire replacement, lockout assistance, battery jump-start services, and fuel delivery. There’s a $150 limit per benefit. Three claims are allowed per benefit period.

Note that these coverages may also be included on your auto insurance policy, so double check to make sure you’re not paying twice for the same coverages.

What’s Not Covered

One of the most important parts of your contract with CarShield will be the list of ineligible services. I recommend you read this section very carefully. CarShield vehicle service plans will not pay for the following:

• Repairs performed without prior authorization
• Issues caused by inadequate maintenance
• Regular maintenance items, like brake pads, filters, and fluid changes
• Damage caused by acts of nature or external circumstances, like vandalism or storms
• Damage resulting from misuse
• Issues caused by engine overheating due to inadequate levels of coolant, fuel, or fluids
• Diagnostic costs, including engine teardown
• Failures of airbags, seat belts, or other restraint systems

A very basic, no-frills CarShield plan costs between $99.99 and $129.99 per month. Your pricing will vary greatly depending on the age and mileage of your car and other factors that are specific to you. However, this extended warranty company is more affordable than most.

Discounts

As of April 2024, the only discount CarShield has is for multiple cars. Information about senior and military discounts is no longer available on the website, so I’m assuming the discount isn’t available, either.

Money-Back Guarantee

If I were to cancel my CarShield warranty within the first 30 days of your policy, I’d get a full refund. After 30 days, I could get a prorated refund based on the amount of time left on my contract.

Cancellation Fee

CarShield’s pay-as-you-go plan means I can cancel at any time by contacting the customer service department at 1-800-587-4162. Before you sign up for an extended warranty, ask your agent to point out the cancellation policy in the contract, as some plans may charge a $50 administrative fee.

CarShield does not offer 24/7 customer support by phone, but you can file claims online at any time. You can reach the customer support department by calling 1-800-587-4162 Monday through Friday from 7 a.m. to 6 p.m. CT and on Saturday from 8 a.m. to 3 p.m. CT.

Better Business Bureau

CarShield is now accredited with the BBB and has an A rating. However, its customer rating is still very low, only 1.45 out of five stars, mostly of aggrieved customers who did not understand the waiting period.² Most businesses have very low customer ratings on the BBB, so I took this information with a grain of salt.

Trustpilot

In contrast, there were higher ratings and more positive CarShield reviews on Trustpilot, with an average rating of 4.2 out of five stars.³

Not every warranty company has a mobile app, but Carshield does. The app allows customers to access:

• Details about their contracts
• Claims information
• Roadside assistance
• Customer service

The app holds 3.5 stars in the Google Play store and 3.3 stars in the App Store. While some reviews mention a buggy user experience and too many ads in the app, most negative reviews are complaints about CarShield not paying for claims rather than issues with the app itself.

Because CarShield is a broker, not a vendor, it’s easiest to compare the company with other brokers, like Carchex and autopom!, than to vendors such as Concord, Toco, and Endurance.

I consider these main factors in our extended warranty review and pricing pages:

Eligibility

I see what vehicles the extended warranty would cover in terms of the driver’s state of residence and the car’s make, model year, mileage, and preexisting conditions, if any.

Buying and Claims Process

I prefer companies that allow customers to get quotes and buy warranties both online and over the phone. I prioritize companies that don’t require a pre-inspection or waiting period, or have shorter waiting periods.

As far as claims, I prefer companies that let customers use any licensed repair facility in the U.S. or Canada and those that pay the shops directly rather than reimburse customers. I also prefer flexible deductibles per visit, not per repair, to save the customer money.

Coverages

Coverages differ widely depending on both the provider and the plan. So, although the more coverages, the better, the best option really depends on what coverages the customer is looking for. I like companies that have 24/7 roadside assistance at a minimum, plus coverage for parts and labor, rental car reimbursement, tire repair or replacement, trip interruption protection, and towing.

Pricing

Across the industry, the average annual cost of an extended warranty is $2,200 to $2,800, but varies quite a bit depending on your vehicle and coverage terms. I compare the services each company offers with its average cost to see if it is a reasonable value. However, because nearly no extended warranty companies are forthright about their prices, I am forced to depend on averages.

Customer Service

I prioritize companies that let their customers reach them in multiple ways: email, online forms, and phone. I also check customer service ratings from the BBB and Trustpilot, trusted third parties with reviews from thousands of real customers.

Mobile App

Some companies offer iOS and Android mobile apps, which allow for easy claim submission, repair shop location searches, and other tools. I look for well-designed apps that have ratings of at least three out of five stars in both the Apple App Store and the Google Play store.

Extras

Some companies offer extras, but these perks are rare. For example, Toco provides a discount on reservations from Hotels.com. However, these are bonuses, so I don’t penalize companies that lack them.