CarShield Faces Scrutiny After FTC Settlement Over Deceptive Marketing

You've seen and heard the commercials.
CarShield, a popular car warranty company, has been the focus of consumer warnings amid ongoing scrutiny. The company advertises plans that claim to protect drivers from costly repairs, but recent reports suggest you should do your homework before signing a contract.

AN FTC SETTLEMENT WITH THE FTC

In 2024, the Federal Trade Commission (FTC) settled a case against CarShield for deceptive marketing practices, ordering the company to pay over $9.6 million to consumers who filed claims denied under their plans.

MISLEADING ADVERTISING SITED BY FTC

The FTC found that CarShield’s advertisements, which promised, "you'll never pay for expensive car repairs again," were misleading, as many repairs were not covered. CarShield neither admitted nor denied the allegations but agreed to the settlement.
Despite the controversy, CarShield maintains a high rating of A+ from the Better Business Bureau, and many customers report satisfaction with their service.

A LOW CUSTOMER RATING FROM SOME USERS

However, the BBB’s consumer warning highlights a low customer rating of 1.5 to 3 stars, citing thousands of complaints about denied claims, poor service, and the use of cheap, third-party parts. Critics and online review sites warn of long delays, poor customer support, and hidden costs.

MANY CONSUMERS LIKE THE SERVICE SO DO YOUR HOMEWORK

However many consumers remain pleased with CarShield’s offerings, but officials advise doing thorough research before signing a contract. BBB officials emphasize that consumers should carefully consider their options and only agree to services that best fit their needs.