FTC says CarShield didn’t cover car repairs as advertised

Unfortunately, this happened to me. I had their "service" for over 9 months.

I took my vehicle to an authorized mechanic that I found in the CarShield app and was given a quote.
CarShield said they would not pay the entire amount because they wanted a "rebuilt" part to be installed.
The mechanic said no because it would void the warrant the mechanic shop offered.

The entire quote amount was nearly $1600, and I was expected to pay nearly $900 for my portion of the repair costs, since the authorized part was going to be installed instead of the rebuilt part, because the rebuilt part didn't match my vehicle make.

So, I told them to take a hike, and I cancelled the service.

It’s not just CarShield. I’m going through the same thing with Everything That Breaks. Before moving forward I asked the representative on the phone about coverage and was reassured several times I had full coverage inside and out SPECIFICALLY bumper to bumper and was told yes. As of today they are trying to not honor that or even take the time to pull the call as the representative said is usually done in situations like this and if it was offered/said or agreed then they will honor it. I am currently waiting a response from management. At this point I have already paid roughly $1,568 to this company.

Helpful topic and well-written, concise story. This will be helpful for seniors in my HUD senior building who still drive, and are tempted to opt into a seemingly great deal for repairs. It would also be helpful to publish these shorter articles into Spanish and Russian.
Thanks!

I always knew these guys were crooks and am furious their tv ads were allowed to air. Hope they go to prison.

Having been a Service Manager for many years, purchasing a service contract is one of the biggest waste money. Buying a reputable vehicle is the best way to save money.

Which of current car service would u recommend?

Hi,

I have car shield and when I do I hope it pays.

What is the FTC going to do about this problem?

The FTC needs to act on this and get people's money refunded!!!

Thank you and please respond to this email.

Best,
Rick Dellacorino

Car Shield are definitely a fraudulent company. for the two years I paid them 144. 00 dollars every month, they covered nothing. FTC is right.

I’m so glad that I got this email from Consumer Protection today!!
I was contacted by Car Shield to consider their services because my Jeep Liberty is 2007 and I was looking for something like Car Shield…
That was close! Thankful for the warning!!

I hate those adds. I have never believed them either. There is enough dishonesty in the world without movie stars helping rip off people. Would never buy this product.

Thank You

i expect that ,because it was promoted too much and every car dealership was pushing it like candy , my opinion if you can spend $30 a month on carshield you can put $30 a month back to pay for repairs

I tried Carshield for several months. I spent more on repairs than I saved with them. They only covered a front wheel axle and a radiator for my car which was about $170. However, I spent $500 or more because they didn't cover such things as ac, transmission, brakes, etc. Don't use them or any of those companies because they are a rip off!!!!

Thank you! I had wondered about this "insurance"--and considered it...asked for references on facebook and heard nothing---so I decided not to look further. Your info reinforces that decision, and I appreciate it!

I had a contract with them and at first it was great. Then my transmission was needed to be replaced?? and they didn't cover it because I didn't have my transmission flushed at the mileage the owners manual recommended.
Endurance claimed the same thing. Yes, I had both companies because one would be expiring and I didn't want to renew it.
I recommend opening a bank account and just put 3 or 4K in it. Then each month put the sum of a monthly payment away for your repairs.

Thank you! Finally the truth about Car Shield. It’s a ripoff!!! They promise you and they don’t deliver using the billion of exceptions they put in the contract.

They also refer you to another Company associated with them for your claim.

I have carshieldand experienced incredible service from them. I needed a new AC compressor and they replaced it and gave me adeguet rental coverage. My car was fixed at the Lincoln Mercury Dealership. I found them reputable.

This is the absolute truth! This company denied paying my engine repair because the engine failed due to a cooling system problem. I had to pay out of the pocket all the repair workas well as the diagnostics. My care insurance paid for my rental, Car Shield did nothing! And on top of everything they are no caring!

Thanks for the update on Car Shield!

Thank you. I’m sharing this with others I have Geico.

Shocking! I had great respect for two of the celebs in the ads until reading this FTC report. Now that 'respect' has gone fron 'great' to a
lowered level.
It's a wise practice to question all ads, aspecially when the ad sounds way to good to be true.
Thanks for the FTC report.
SAME ON CARSHIELD

I guess if it sounds too good to be true, it probably isn't. Luckily we have never dealt with them, we use local people.

Endurance is the same way

This is a wake up call because I was looking for some like that and when you got celebrities talking about it you got the attention. Thank you consumer report job well done.

"Service Contracts" promoted thru aggressive marketing are seldom a good deal. I just had a friend have to put a $12,000 motor in his late model small pick-up. Luckily the service contract was thru the original manufacturer.
Be very wary of auto dealers promoting expensive service agreements. They are easily one of the biggest money makers at new & used car dealers.

My husband enrolled in CarShield a few months ago. After a period of time, where we had clocked the required one thousand miles before our coverage was active, we had a problem with his car. We called Car Shield only you be told that Car Shield wouldn’t pay for any repairs, referring us to a third party, who had acquired our “contract “. We didn’t know we had a contract. Anyway, long story short, nothing was paid, third party informed us the payment would be approximately $20 per month more, and we had to wait until another one thousand miles was put on our vehicle , to be in effect. We decided to cancel and ask for a refund of all our payments. We are still waiting for that. Also we still receive solicitations from Car Shield, and hate seeing their continued advertising on television touting their wonderful company paying out over 1 billion dollars! They need to be put out of business!

I had Car Shield for a few years for my 2011 Dodge Ram. Every time I tried to get something repaired I would call to see if they covered it. They said yes. But when my mechanic would send in a request for an approval it was denied. In the whole time I had Car Shield I only got one thing fixed on my truck.
The monthly rate I was paying would have been better off in my savings account then I could have paid for my repairs myself.
After the only repair they did cover was done I dropped Car Shield like a bad habit!!!!
I would NEVER recommend them to anyone. Not even someone I hated!

I too was treated bad by car sheild,
And a auto shop called firstone and my car dearlership where I brought my car. They both refused Car sheild, which caused me a headache. I did not know thar a auto car shop can refuse Car shield .

So what is the result? Fines, refunds to customers or nothing as usual?

I have just reader the Consumer warning concerning CarShield. I am a CarShield customer. I chose Car Shield because it was one of the companies witht he hightest ratings by Forbes, Consumer etc and the FTC. Now I don't know what to do. Are you advising people to avoid CarShield, which sounds like a ripoff or what. I did have to make a claim under another auto service contract compnay that had not been rated and they paid out on a rather obscure claim that my dealer told me they expected wold be declined. I read the recommendations and switched to CarShield which, in light of the FTC consumer, seems to have been a mistake.

The commercials are on every station and repeat over and over. Isn’t there something the FTC can do? If the company is as underhanded as explained here, the unsuspecting public needs protection and facts. Just posting here is not near enough.

Thank you for this information; it’s very important.

I sold cars. Please pay attention to this article! Also, celebrities are paid to read a script that may have nothing to do with the truth!

Endurance is another company that did not cover any mechanical issues. Car dealers should be on the hook if they are selling products/contracts that say mechanical issues will be covered when they are not. I have had 3 contracts and they did not cover anything in almost 10 years. When requested coverage, they denied. Since car dealers make a great commission, they should be held accountable for the negligence. Thank you.

I never buy celebrity endorsed products. They are being paid to speak the script.

Another “To Good To Be True Deal”

I had Carshield policy and they continously gave me run around on Repairs, they refuse to take the repair facility calls, I ended up trading in my Honda and got another vehicle

All warranty plans are a rip off in my opinion. The companies offering extended warranties are in business to make money. They pay out a lot less than they take in. Exclusions and other conditions are to make them more money. Most vehicles today are well-made and if maintained/serviced, preferably by the dealership it is highly unlikely you will need a major repair. Don't pay these people, put that money in a bank, drawing interest, and should some major repair be needed, you will have cash in the bank.

I've been wondering when Car Shield would be exposed. I do not understand why people fall for these fraudsters. Insurance, all of them, are FRAUDSTERS.

I signed up for car shield hoping that I would be able to save some money on car repairs Since I retired and on affixed income. every dealer that I had taken my vehicle too did not honor car shield policies. after anguish and discuss I terminated this company because of false and fraudulent information provided by celebrities and others.

I had to pay $1,800 when my transmission misfire and I paid car shield and full for my warranty they paid very minimum and I was out of $1,800 definitely false advertisement if whoever received 10 million dollars how can I be refunded from that

I am not at all surprised. Let the Buyer Beware applies to all business transactions.