If you've been researching CarShield, you've probably come across their BBB rating. CarShield holds an A+ rating from the Better Business Bureau. That sounds impressive. But there's critical context most people miss when they see that number.
CarShield's BBB Rating: The Full Picture
The Rating: A+
CarShield is accredited by the Better Business Bureau and holds an A+ rating. The BBB assigns letter grades from A+ to F based on factors including how long the business has been operating, whether it responds to complaints, and its complaint volume relative to business size.
The Consumer Review Score: 2.9 out of 5
The BBB also publishes a separate customer review score based on actual consumer ratings. CarShield's customer review score is approximately 2.9 out of 5 based on over 2,700 complaints filed in a three-year period.
This creates an important distinction: the A+ letter grade reflects how the company operates as a business. The 2.9 customer score reflects how real customers experience the product.
The FTC Action — More Significant Than the BBB Rating
In April 2025, CarShield was ordered to pay $10 million to the Federal Trade Commission for deceptive advertising practices. The FTC found that CarShield's advertising misled consumers about the scope of coverage — implying broader, easier-to-use protection than the contracts actually delivered.
A federal enforcement action resulting in a $10 million penalty carries significantly more weight than a BBB letter grade when evaluating any company. The FTC doesn't act on minor complaints — a $10 million settlement reflects a documented pattern of consumer harm.
What CarShield's BBB Complaints Are Actually About
The most common complaint patterns documented in BBB filings against CarShield:
1. Claim Denials
The most frequent complaint category involves repairs that customers believed were covered being denied. Common reasons cited by American Auto Shield (CarShield's claims administrator): pre-existing conditions, missing maintenance records, components not listed in the specific plan purchased. Many complainants state these issues were not clearly explained at point of sale.
2. Advertising vs Contract Gaps
Multiple BBB complaints describe customers purchasing coverage based on advertising or verbal sales representations, then discovering their specific repair wasn't covered. This is the core issue the FTC addressed in its 2025 enforcement action.
3. Billing After Cancellation
A recurring pattern of complaints describes charges continuing after customers requested cancellation. Complaints describe difficulty stopping charges even after written cancellation requests were submitted.
4. Labor Rate Disputes
Multiple complaints describe being charged the difference between CarShield's authorized labor rate and the shop's actual labor rate — a cost that was not clearly disclosed during the sales process.
How CarShield's BBB Record Compares to Competitors
| Provider | BBB Rating | BBB Consumer Warning | FTC Actions |
|---|---|---|---|
| CarShield | A+ | Yes | $10M settlement (2025) |
| Endurance | A | No | None |
| CARCHEX | A+ | No | None |
| Complete Auto Protect | A+ | No | None |
What a BBB Rating Actually Tells You
The BBB letter grade is not a measure of customer satisfaction or product quality. It measures whether a business:
- Is transparent about its business practices and ownership
- Responds to complaints filed with the BBB
- Has been in business long enough to establish a track record
- Has no unresolved government actions
A company can have an A+ BBB rating and still have thousands of unhappy customers. The A+ reflects operational legitimacy, not product quality. This is why looking at both the letter grade and the customer review score together gives a more complete picture.
Is CarShield Legitimate Despite the BBB Complaints?
Yes. CarShield is a real company that has paid over $1 billion in claims across more than 2 million vehicles. The complaints and FTC action do not mean CarShield doesn't pay claims — they reflect a gap between how coverage is marketed and what the contracts actually deliver. Legitimate claims on covered components are paid.
The practical implication: if you buy from CarShield, request the American Auto Shield contract (the actual binding document) before purchasing, read the exclusions section carefully, and don't rely on advertising claims or verbal sales representations.
See If Your Vehicle Qualifies for Coverage
Answer a few quick questions to see what fits your vehicle and budget. No obligation, free, 30 seconds.
Check My Coverage Options →Frequently Asked Questions
What is CarShield's BBB rating?
CarShield holds an A+ BBB accreditation rating. However, the BBB also issued a consumer warning for CarShield and the customer review score is approximately 2.9 out of 5 based on over 2,700 complaints in three years. The letter grade and the consumer experience score tell different stories.
Why does CarShield have an A+ rating despite so many complaints?
The BBB letter grade primarily reflects whether a business responds to complaints and operates transparently — not whether customers are satisfied. CarShield responds to BBB complaints, which helps maintain their letter grade regardless of the volume or nature of those complaints.
Is CarShield accredited by the BBB?
Yes, CarShield is BBB accredited. However, BBB accreditation is a paid membership that businesses apply for — it does not independently verify the quality of the product or service being sold.
What did the FTC do to CarShield?
In April 2025, the FTC ordered CarShield to pay $10 million for deceptive advertising practices. The FTC found that CarShield's ads misled consumers about the scope of coverage — implying broader protection than the contracts actually provided. CarShield settled and agreed to make only truthful claims in future advertising.
Should I use CarShield based on their BBB rating?
The BBB A+ rating alone should not be your deciding factor. Consider the full picture: the consumer warning, the 2.9 customer review score, the FTC settlement, and the broker structure (claims paid by American Auto Shield, not CarShield). Compare these against providers with cleaner track records before deciding.