CarShield, One of the Dishonest Businesses in the United States?

Paladin1950

Paladin1950

Still love 50's & 60's music!
Location
Mohawk Valley, NY
We have all seen the CarShield commercials on TV, with people like Ice-T and other celebrities claiming how wonderful they are and how CarShield has saved them hundreds of dollars. Yet for years, I have heard and read about how people are being ripped off all the time, because CarShield has all of these loop holes they created that get them out of paying for repairs for your car. There is a video on YouTube filmed by an owner of a repair shop who claims that CarShield is the very worst car warranty company. He give examples of several cars in his lot and what was wrong with each car and the excuses that CarShield gave for not paying for repairs.

When you go to their website, you see they have 4 monthly plans that are $79, $89, $99, and $109 a month. The cheapest is $948 a year. If you have a newer car, do you really have $948 a year that you spend on repairs?

The owner of the repair shop, suggests that you stay as far away as possible from CarShield.

https://www.sitejabber.com/reviews/carshield.com
 

Much like those "Home Warranties," I'm really astonished that people don't think.
I'm no genius & I don't know squat about business.
It doesn't take a genius to figure out that The ONLY way they can stay in business is by making more money on premiums than they spend on repairs. DUH!!!! That's how every insurance company works.
The fact that they can afford the extensive advertising indicates how many suckers there are out there. How discouraging that people are so easily programmed.
LOL - "Once your car breaks down, it's too late."
And that lady watching her toilet run for 3 hours & her air conditioner blowing her out of her house? I just HATE it when that happens! 😂
 
technically, i don't think those warranty ads are deceptive... just meant for uninformed people. now DQM (don't quote me) but i bet any insurance comapny would/could write you a policy that would totally replace your car with no deductible... but it would cost you BIGLY!!
 
wcwbf said:
technically, i don't think those warranty ads are deceptive... just meant for uninformed people. now DQM (don't quote me) but i bet any insurance comapny would/could write you a policy that would totally replace your car with no deductible... but it would cost you BIGLY!!
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Speaking of insurance in general, the insurance industry is one big legalized shake down racket, enabled by Tort Law.

...I was going to expound on that, but really no need to. shrugs.gif
 
I know a fellow that just earlier this year had American Home Shield and his refrigerator went kaput. The tech told him that the freezer’s evaporator coil had seen its days. He had to pay $100 for the tech visit and was told it would cost about $1000 to replace the coil. He had the tech call the warranty company and they agreed to pay up to $500 because of the age of the refrigerator.
 
If your 2008 Dodge Charger, worth about $2,500, runs into a deer causing damage to the radiator and AC, I seriously doubt CarShield is going to fork over $8-10,000 to fix it. I don't think customer realize how little they are getting out of the bargain. Plus, today, info about your car is online-oil changes, repairs, accidents just type a VIN number. My Hyundai sends monthly data to my dealer. That gives car insurance companies a fair evaluation of your car. I haven't had dealings with those companies, so I can't say they are SOBs. But I do think people have an unrealistic expectation of what they are truly getting, not what the TV ads suggest.
Personally, I always thought just saving the premiums to help pay for the repairs, was the better way to go.
 
Been There said:
I know a fellow that just earlier this year had American Home Shield and his refrigerator went kaput. The tech told him that the freezer’s evaporator coil had seen its days. He had to pay $100 for the tech visit and was told it would cost about $1000 to replace the coil. He had the tech call the warranty company and they agreed to pay up to $500 because of the age of the refrigerator.
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I would think it could be cheaper to just save the money spent on that warrenty and use it when a repair or replacement was needed?

I have Covered California but I don't carry the dental. Even the dental office stated you might be better off not spending the money on the premium and keeping it for dental costs.
 
I always thought it sounded like a load of crap. I'll pass.
 
I no longer have a car but I always wondered about that. It seems like it's one of those "if it seems too good to be true, it probably is" situations. I don't know anyone who has fallen for their advertisements.
 
Been There said:
I know a fellow that just earlier this year had American Home Shield and his refrigerator went kaput. The tech told him that the freezer’s evaporator coil had seen its days. He had to pay $100 for the tech visit and was told it would cost about $1000 to replace the coil. He had the tech call the warranty company and they agreed to pay up to $500 because of the age of the refrigerator.
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"$1,000.00 for repair & $100.00 for the visit? If it weren't so pathetic, it would be hilarious.
After my 35-year-old fridge died, I bought a NEW one. Same full size, for $900.00 from Lowe's. $25.00 delivery includes disposal of my old fridge. And 12 months to pay with no interest.
 
win231 said:
"$1,000.00 for repair & $100.00 for the visit? If it weren't so pathetic, it would be hilarious.
After my 35-year-old fridge died, I bought a NEW one. Same full size, for $900.00 from Lowe's. $25.00 delivery includes disposal of my old fridge. And 12 months to pay with no interest.
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That's the way it is with American Home Shield. The policyholder has to pay $100 for each visit. I also know another person that had AHS and his heat pump went out. The tech that they sent out charged him a $100 to check out the system and because the evaporator coil leaked and caused some mold to form and because the technician said there was mold around the evaporator coil, AHS would not cover the expense to replace the heat pump, but they allowed him $1000 towards the cost of a new one, which cost him just under 10 grand.

I almost was suckered into buying into a contract with them, but after these guys told me their story, I decided "no way."
 
fuzzybuddy said:
If your 2008 Dodge Charger, worth about $2,500, runs into a deer causing damage to the radiator and AC, I seriously doubt CarShield is going to fork over $8-10,000 to fix it. I don't think customer realize how little they are getting out of the bargain. Plus, today, info about your car is online-oil changes, repairs, accidents just type a VIN number. My Hyundai sends monthly data to my dealer. That gives car insurance companies a fair evaluation of your car. I haven't had dealings with those companies, so I can't say they are SOBs. But I do think people have an unrealistic expectation of what they are truly getting, not what the TV ads suggest.
Personally, I always thought just saving the premiums to help pay for the repairs, was the better way to go.
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"Personally, I always thought just saving the premiums to help pay for the repairs, was the better way to go." There ya go Fuzzbuddy! It reminds me of something my supervisor used to say. When you buy a new T.V...if you put a dime or quarter into a jar every time you turn it on, by the time it needs a repair or to be replaced, you'd have the money to pay for it.
 

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