Administrator Review

American Auto Shield: Who Actually Pays Your CarShield Claim

Most CarShield buyers have never heard of American Auto Shield until they file a claim. Here is what you need to know before purchasing.

Get My Free Quotes →
No obligationTakes 30 secondsFree quotes

American Auto Shield (AAS) is the company that actually processes and pays CarShield claims -- but most CarShield customers have never heard of them until they try to file a claim. This guide explains what AAS does, why it matters, and what to know before buying any CarShield plan.

You buy from CarShield but deal with American Auto Shield at claim timeWhen you file a CarShield claim, the entity that approves or denies your repair is American Auto Shield -- not CarShield. This separation is the most important thing to understand before purchasing.

What Is American Auto Shield?

American Auto Shield (AAS) is a vehicle service contract administrator headquartered in Greenwood Village, Colorado. It is the primary administrator for CarShield contracts -- meaning it underwrites the coverage and processes all claims on CarShield's behalf. When you buy a CarShield plan, you sign two documents: a CarShield enrollment agreement and an American Auto Shield service contract. The American Auto Shield contract is the binding legal document that governs your coverage.

How American Auto Shield Claims Work

  1. Your vehicle breaks down -- you take it to any ASE-certified shop
  2. The shop calls American Auto Shield (not CarShield) for authorization
  3. AAS reviews the claim, checks coverage, verifies maintenance records, assesses pre-existing conditions
  4. AAS approves or denies the specific repair
  5. If approved, AAS pays the shop at AAS's authorized labor rate
  6. If there is a labor rate gap, you pay the difference plus your deductible

The Labor Rate Gap -- A Hidden Cost

American Auto Shield authorizes labor at a set hourly rate. If your repair shop charges more than AAS's approved rate -- which is common at dealerships and many independent shops -- you pay the difference on top of your deductible.

Example of the labor rate gapYour shop charges $185/hour. AAS authorizes $150/hour. On a 4-hour repair, you owe an extra $140 (the $35/hr difference x 4 hours) plus your $100 deductible. Instead of paying just $100, you pay $240. Always ask the shop what AAS's approved labor rate is before authorizing repairs.

American Auto Shield Reputation

American Auto Shield has its own BBB listing and holds an A+ rating. However, many complaints filed against CarShield with the BBB originate from AAS claims disputes -- the two companies' reputations are closely intertwined because of the CarShield relationship.

Common AAS-related complaints: claim denials citing pre-existing conditions argued retroactively, labor rate disputes, and difficulty reaching AAS directly when CarShield handles initial contact.

The Broker Layer Problem

American Auto Shield is a legitimate claims administrator. The issue is the broker layer CarShield adds. When disputes arise, CarShield and AAS can each defer to the other, creating friction and delays. Direct administrators like Endurance and Complete Auto Protect handle the entire process internally -- one company, full accountability, no passing the buck between entities.

Compare Direct Administrators vs CarShield/AAS

See providers that handle their own claims with no third-party administrator between you and your coverage. Free, 30 seconds.

Compare My Options →
No obligationUp to 250K milesTakes 30 seconds

Frequently Asked Questions

What is American Auto Shield?

American Auto Shield is the third-party administrator that processes and pays CarShield claims. They make the approval or denial decision -- not CarShield.

Is American Auto Shield legit?

Yes. It holds an A+ BBB rating and is a legitimate company. The concerns relate to the CarShield broker structure creating friction, not to AAS being fraudulent.

How do I contact American Auto Shield directly?

Direct contact information is in your CarShield contract documents. Always request direct AAS contact information before purchasing any CarShield plan.

Does AAS cover all CarShield plans?

AAS is the primary administrator for most CarShield contracts. Your specific contract documents will identify which administrator backs your plan.