CarShield extended car warranty review 2026: pay-as-you-go contracts, low deductibles

CarShield is the rare extended car warranty provider that offers pay-as-you go contracts and coverage for EVs, motorcycles and ATVs. We also like that customers have access to 24-hour roadside assistance, a rental car (or rideshare budget) and even reimbursement for food and lodging if they break down on the road.

These assets helped CarShield earn a spot on CNBC Select's list of the best extended car warranties.

Like most service contract providers, however, CarShield is a broker, not a direct provider. That means your contract will be administered by a third party, American Auto Shield, which can complicate the claims approval process. 

Additionally, CarShield has a high volume of unresolved complaints registered with the Better Business Bureau. And in 2024, it paid $10 million after the Federal Trade Commission (FTC) accused it of deceptive advertising practices. 

Key CarShield benefits and drawbacks

Pros

• Flexible deductibles
• Up to $100 a day for car rental 
• Pay-as-you-go coverage

Cons

• Some plans are not transferable
• Rates are somewhat higher than competitors.
• Accusations of deceptive advertising by the FTC

CarShield has seven vehicle service contracts, available in all U.S. states except California.  

Diamond: The closest to a manufacturer's warranty, the Diamond plan offers bumper-to-bumper coverage, including the engine, transmission, steering, suspension, brakes, fuel, A/C and electronics.

Platinum: The best option for higher-mileage cars, this plan covers the engine, transmission, AC, electrical system, starter, water and fuel pumps.

Gold Select: A powertrain warranty with some add-ons, like power windows.

Silver: Basic powertrain coverage.

Aluminum: For cars with a lifetime powertrain warranty, this covers heating, cooling, electronics and other systems.

Motorcycle and ATV: Comprehensive coverage for specialty vehicles that includes the engine, transmission, primary drive assembly, drive axle, cooling system, steering, suspension, brakes and more.

Electric vehicle: Covers EV battery pack, electric drive unit and more.

To apply for a service contract with CarShield, you'll need the make and model of your vehicle, as well as its Vehicle Identification Number (VIN) and current mileage.

Age and mileage limits

Vehicles must have no more than 300,000 miles and, while there is no stated age limit, plan choice may be limited for vehicles over 20 years old. 

Waiting period

Extended warranty companies commonly impose waiting periods to ensure a vehicle is in good working condition. CarShield requires 25 days and 500 miles before its warranty takes effect, which is less than many competitors. 

Deductible

$1,000 for any repairs made during the first three months, then a deductible of $0 to $250 for most parts and $250 to $500 for engine or transmission replacement. 

Claims process

Contract holders can submit a claim with CarShield or American Auto Shield, including their name, email, phone number, contract number, breakdown date and the car's VIN number, along with any customer concerns.

Once the claim is filed, you can visit CarShield's Shield Repair Network site to find an approved repair facility in your area. 

If the repairs are covered, CarShield makes payment directly to the garage, minus any deductible you are responsible for.

Most CarShield plans range between $140 and $170 per month. We requested a quote for a 2021 Ford Escape with 50,000 miles. For the bumper-to-bumper Diamond plan, CarShield quoted a monthly rate of $149. 

There are various discounts available, including a rate reduction for active-duty servicemembers and veterans, worth up to $400 per year.

CarShield offers 24/7 claims reporting on the CarShield and American Auto Shield websites or you can contact claims directly at 800-859-9923, Monday through Friday from 7 a.m. to 6 p.m. CT and Saturdays from 8 a.m. to 3 p.m.

New customers can call 800-789-9241, Monday to Friday from 8 am to 11 pm, Saturday from 9 am to 8 pm and Sunday from 9 am to 6 pm. 

CarShield earned an A+ from the Better Business Bureau. However, it received more than 2,700 complaints in the last three years, with fewer than 750 closed in the previous 12 months.

In 2024, CarShield paid $10 million to settle allegations by the Federal Trade Commission that its ads were deceptive and that customers discovered many repairs were not covered. In a statement, CarShield said it disagreed with many of the allegations, but would work alongside the FTC "to carefully examine ways to improve our communications with customers." 

Its marketing now directs audiences to the CarShield website, "where full plans are easily viewed prior to making a purchase decision." 

CarShield also added more than 10,000 repair shops to its network and expanded rental car coverage.

Here's how CarShield stacks up against two major competitors.

CarShield vs. Endurance

CarShield offers pay-as-you-go monthly coverage that is essentially unlimited as long as you maintain payments and keep ownership of the car. Endurance only provides four-year contracts with three-year payment plans. 

CarShield is also more generous with roadside assistance — it includes up to $100 a day for a rental car, compared to $30 daily from Endurance. It also offers $150 per incident for towing, tire replacement, lockout assistance, battery jump-start services and fuel delivery.

CarShield vs. CarChex

CarShield has several advantages, including coverage for cars with up to 300,000 miles on the odometer, compared to 250,000 miles with CarChex, and  a considerably higher roadside assistance benefit

CarChex has a better reputation for customer service, including far fewer complaints and unresolved consumer issues.

And while CarChex service contracts are available in all 50 states, CarShield does. not operate in California.

CarShield may be right for you if you have a high-mileage vehicle and are concerned about needing roadside assistance. Its low deductible and month-to-month coverage are pluses, as well, since most warranty companies lock you into a multi-year contract.

Be sure to read reviews and compare pricing; however, as some customers report issues with claims handling and service may be limited for older vehicles.

At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.

CNBC Select reviews extended car warranties using a variety of criteria, including rates, terms, mileage and vehicle age limits, availability, fees, payment options, online experience and customer satisfaction. 

We also incorporate findings from independent sources, including ratings from the Better Business Bureau.

Sample rates were based on a 2021 Ford Escape with 50,000 miles.

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