Thinking about getting CarShield for your vehicle? While their commercials make it sound like they cover practically everything, the reality is quite different. Before you sign up for any vehicle service contract, it’s crucial to understand exactly what you’re not getting. Let’s break down what CarShield doesn’t cover so you can make an informed decision about protecting your ride.
Common Exclusions Across All CarShield Plans
No matter which CarShield plan you choose, certain things simply won’t be covered. These standard exclusions appear in all their contracts.
Pre-Existing Conditions
CarShield won’t cover issues your car had before you purchased their protection plan. If your check engine light was already on or your transmission was slipping before you signed up, don’t expect CarShield to foot the bill. They’ll likely send an inspector to check for pre-existing problems when you first file a claim.
During the claims process, CarShield may ask for maintenance records to verify the problem wasn’t present when you purchased coverage. This is why it’s crucial to address any issues before applying for a CarShield plan.
Maintenance-Related Failures
Regular maintenance is your responsibility, not CarShield’s. If your engine seizes because you never changed the oil, that’s on you. CarShield excludes damages caused by:
- Missed oil changes
- Neglected fluid checks
- Ignored manufacturer maintenance schedules
- Skipped timing belt replacements
You’ll need to keep detailed records of all maintenance to prove you’ve kept up with recommended service intervals. Without these records, CarShield can deny your claim, arguing the failure resulted from poor maintenance.
Normal Wear and Tear Items
The parts that naturally wear out over time typically aren’t covered. This includes:
- Brake pads and rotors
- Clutches
- Wiper blades
- Lightbulbs
- Tires (with limited exceptions)
- Batteries (in most plans)
- Filters
- Belts and hoses
CarShield’s stance is that these items deteriorate through normal use and are expected replacement parts. For example, while they might cover a $3,000 transmission repair, they won’t pay for your $200 brake pad replacement.
Collision and Environmental Damage
If your car’s damaged in an accident or by Mother Nature, don’t call CarShield—call your insurance company. CarShield doesn’t cover:
- Accident damage
- Flood damage
- Fire damage
- Hail damage
- Vandalism
- Animal collisions
These events fall under your auto insurance policy’s domain, not your vehicle service contract. For instance, if a flood damages your engine, that’s an insurance claim, not a CarShield claim.
Modifications and Vehicle Misuse
Fans of customizing their vehicles should take note. CarShield typically won’t cover failures related to:
- Aftermarket parts
- Performance modifications
- Lift kits
- Oversized tires
- Racing or competition use
- Commercial use (including rideshare services)
- Off-road driving
- Towing beyond manufacturer specifications
If your lifted truck with aftermarket turbo experiences engine problems, CarShield will likely argue the modifications caused the failure and deny your claim.
Plan-Specific Exclusions
The specific components excluded vary depending on which CarShield plan you choose. Let’s look at what each tier doesn’t cover.
Silver Plan Limitations (Basic Powertrain)
The Silver plan is CarShield’s most affordable option, but it excludes numerous components:
- Steering systems (power steering pumps, rack and pinion)
- Suspension components (struts, shocks, control arms)
- Electrical components (alternators, starters)
- Air conditioning system
- Fuel system components
- Cooling system parts
- Brake system (except when part of a covered component)
With Silver, you’re essentially only covered for the engine, transmission, and drive axle. Everything else comes out of your wallet.
Gold Plan Gaps
The Gold plan adds some coverage but still excludes:
- Advanced electronics and infotainment systems
- Power accessories (windows, seats, mirrors)
- Some suspension components
- ABS braking systems
- Luxury vehicle components
For instance, if your navigation system fails or your power windows stop working, these repairs wouldn’t be covered under the Gold plan.
Platinum and Diamond Plan Exclusions
Even CarShield’s premium plans have limitations:
- Hybrid/electric vehicle batteries (limited coverage with caps)
- Certain luxury electronics
- Aftermarket accessories
- Some advanced driver assistance systems
- Paint and cosmetic items
While these plans cover more than the basic options, they still have significant gaps. For example, replacing a hybrid battery can cost over $6,000, but CarShield caps coverage for these components.
| Plan Type | What’s Excluded | Example Uncovered Repair |
|---|---|---|
| Silver | Everything except engine, transmission, and drive axle | Power steering pump replacement ($500) |
| Gold | Electronics, power accessories, some suspension | Navigation system repair ($1,200) |
| Platinum | Some luxury components, advanced technology | Advanced driver assistance sensor ($800) |
| Diamond | Hybrid batteries (limited), cosmetic items | Full hybrid battery replacement ($8,000) |
Procedural Requirements That Can Lead to Denied Claims
Even if your repair should be covered, failing to follow CarShield’s procedures can result in denial. Keep these requirements in mind.
Authorization Requirements
CarShield won’t cover repairs unless you get pre-approval. If your car breaks down and you have it towed to the nearest shop without contacting CarShield first, you might be stuck with the bill. You must:
- Call CarShield before authorizing repairs
- Use their approved repair facilities when possible
- Get approval for the specific repair before work begins
- For emergency repairs, notify them within 72 hours
Many customers report having claims denied simply because they didn’t call for authorization before repairs started.
Diagnostic and Tear-Down Costs
If your vehicle needs diagnostic work to determine the cause of failure, you might be responsible for these costs—even if the final repair would be covered. This includes:
- Diagnostic fees
- Inspection costs
- Tear-down expenses to access the damaged component
For example, if a mechanic needs to spend 3 hours diagnosing an electrical issue at $150 per hour, you might be on the hook for $450 even if CarShield covers the actual repair.
Repair Facility Limitations
Not all repair shops work with CarShield, and this can create headaches:
- Some shops refuse CarShield due to payment delays
- Many dealers won’t accept CarShield contracts
- CarShield may only pay “book rate” for labor, leaving you to cover the difference
- Your preferred mechanic might not be approved
This can force you to choose between paying out-of-pocket at your trusted mechanic or using an unfamiliar shop that accepts CarShield.
Additional Coverage Limitations
Beyond the major exclusions, several other limitations affect what CarShield will pay for.
Rental Car and Trip Interruption Restrictions
CarShield offers rental car reimbursement, but with strict limits:
- Maximum of $35 per day for rental cars
- Total rental coverage capped at $175
- Trip interruption benefits limited to $75 per day
- Must be more than 100 miles from home to qualify for trip interruption
With average rental car prices well above $50 daily in most markets, you’ll likely pay the difference out-of-pocket.
Parts and Labor Rate Caps
CarShield often imposes limits on what they’ll pay for parts and labor:
- May only authorize aftermarket or remanufactured parts, not new OEM components
- Labor rates capped at “national average” regardless of your location
- Shops in high-cost areas often charge more than CarShield will pay
- You’ll cover the difference between authorized amount and actual cost
For instance, if your area’s standard labor rate is $150/hour but CarShield only authorizes $100/hour, you’ll pay the $50/hour difference.
Claim Amount Limitations
CarShield contracts include maximum claim limits:
- Per-repair caps (often lower than the actual repair cost)
- Lifetime maximum benefits (once reached, no more coverage)
- Component-specific limits (especially for hybrid/electric components)
These limits aren’t always clearly explained during sales calls but can significantly impact your coverage.
Regulatory Issues and Consumer Complaints
The Federal Trade Commission has raised concerns about CarShield’s advertising practices, alleging they overstate coverage and underplay exclusions.
Common complaints include:
- Difficulty getting claims approved
- Unexpected denials for covered components
- Repair shops unwilling to work with CarShield
- Low authorization amounts requiring significant out-of-pocket expenses
- Long wait times for claim decisions
Before signing up, research recent customer experiences to understand current service levels.
Is CarShield Worth It Despite These Exclusions?
When deciding if CarShield makes sense for your situation, consider:
- The age and reliability of your vehicle
- Your financial ability to cover unexpected repairs
- The specific plan’s exclusions versus your vehicle’s most likely failure points
- Your tolerance for paperwork and potential claim disputes
For some drivers with older, high-value vehicles, CarShield might provide worthwhile protection. For others, the exclusions and procedural requirements might make it less valuable.
Protecting Yourself When Purchasing CarShield
If you decide to move forward with CarShield, take these steps to maximize your protection:
- Read the entire contract before signing (not just the marketing materials)
- Get a comprehensive inspection before coverage begins
- Maintain detailed service records for all maintenance
- Understand the claim filing process before you need it
- Verify your preferred repair facilities accept CarShield
- Consider the true cost including your potential out-of-pocket expenses
Remember that the contract, not the commercial or sales pitch, dictates what’s actually covered.
Alternative Protection Options
If CarShield’s exclusions concern you, consider these alternatives:
- Manufacturer extended warranties (fewer exclusions, but higher upfront cost)
- Dealer service contracts (often more comprehensive than third-party options)
- Savings account dedicated to car repairs (no claim approvals needed)
- Credit cards with extended warranty features (for newer vehicles)
- Mechanical breakdown insurance from traditional insurers
Each option has pros and cons, so research carefully based on your specific vehicle and financial situation.
Understanding what CarShield doesn’t cover is essential to making an informed decision. While their plans offer protection against some major repair costs, the numerous exclusions and procedural requirements mean you’ll still need to budget for many common automotive expenses.
