Does anyone know about the "car shield" kinds of car repair insurance?

[mysteryowl]

Is it worth it?

[SheltieLover]

1. Probably a scam.

Just guessing.

Car Max warranties I have heard are useless.

[rsdsharp]

2. Monthly payments start at about $100/month.

That seems a bit high to me, but you may disagree.

[MissMillie]

25. I'm thinking that if someone has $100/month to pay to them

They can just set $100/month aside to pay for repairs. Yeah, it takes some willpower to not spending it, but better in one's own pocket than in theirs.

Plus, I can help but wonder what percentage of claims Car Shield denies. Insurance companies of all sorts have a habit of denying claims. They're in business to make money, which means they'll look for any way possible to pay money out.

[Frasier Balzov]

3. Like most forms of private marketplace insurance:

It's a premium collection scheme, not a claims paying one.

You can tell where way too much of the money goes. To advertising.

[rsdsharp]

30. I don't disagree with you, but they don't pay that much for advertising.

Yes, the ads are everywhere, but they are what are known as PI accounts — Per Inquiry.

Rather than paying the broadcaster each time the ad airs, they pay a small fee when they are actually contacted by a prospective customer as a result of the ad. They pay Per Inquiry.

[Frasier Balzov]

31. I did not know that!

Thanks for the information!

[FloridaBlues]

4. When the first words out of the commercial is "inflation" so give us your money

I tune out. Check into who owns the company.
Otherwise I don’t know about their services. Read the fine print before you sign up.

[Deuxcents]

5. I know they text, call endlessly

Until I blocked em. They are on tv a lot. Just like those Medicare Advantage ads. Maddening.

[Mr.Bill]

6. Ask the people at the place who does your repair work.

They deal with them way more than any of us probably do.

[mysteryowl]

8. really good tip!

Thanks!

[samnsara]

7. i hate those commercials and i rush to mute them as soon as they come on

[Laffy Kat]

9. I just got it and I don't know.

I have 2018 CRV with about 40k miles and I went for the "Diamond" coverage which costs $125/mo. You have to wait.....I forgot how many weeks before you can file a claim. I guess that's so you won't sign up right after something happens.


On edit: It's strictly a month-to-month deal. When you want to opt out you just stop paying.

[mysteryowl]

11. do you have to keep it for any length of time?

[Laffy Kat]

13. Nope.

The main reason I got it was due to all the theft of catalytic converters around here. BUT, I just found a place that will install a metal plate over the CC, making it extremely time-consuming to steal. They are asking $400 for that. I may just do that instead and stop paying for the Carshield.

[mysteryowl]

14. I understand

I also have heard they are painting cat. conv. red to prevent stealing. What a bizarre thing to steal a car part.
I know they make a lot of money selling them is why they risk it.

[Laffy Kat]

16. Yes! That's what my mechanic told me.

He said to buy some bright orange, high heat, engine paint from a car parts store and spray paint the CC!

Also, after reading some of the comments here, I double-checked and Carshield DOES NOT cover CC or vandalism. Also, they have a poor rate from the BBB. I'm going to opt-out right away.

I love DU.

[mysteryowl]

17. Okay

Glad my thread could help you.

[Lefta Dissenter]

20. My daughter had a Cat Shield installed on her Prius

After replacing the stolen catalytic converter, of course…. 🙄. Thankfully, the insurance company paid for the new converter, so my daughter was out just for the deductible and the Cat Shield.

It was about $400, as you said, but the car place has installed them for several years now, and they’ve never had one fail to protect the catalytic converter.

[Laffy Kat]

22. I am so going to get one.

When you consider how much CCs are going for now. It's absolutely worth it. My son's partner has had two stolen, one right after the other, and had to spend $1900. I feel so bad for him. These boys don't have much money. His insurance didn't cover either one, it was all out of pocket.

[hay rick]

10. Spidey sense says no.

I don't know anybody who has used these services or anything about a specific service, but any warranty or insurance business that spends a lot on advertising is not likely to be looking out for the best interests of consumers. I like the upthread suggestion of checking with your mechanic if you are seriously considering buying a service.

[dweller]

12. Any commercial that states

“70% of the country says we are headed in the wrong direction” without providing some stats to support that, is in my book a right wing scam …

So I don’t listen to them, nor support them

YMMV


✌🏻

[rso]

15. Car Shield

I bought one from my Infinity dealer and it is worth it, but from what I’ve heard from several people is to run away from “Car Shield”, which is supposedly the worst of the bunch.

[Alpeduez21]

18. I don't think the math works out in the buyers' favor

AAA says the average cost of maintenance and repairs is $.09 per mile. At 10,000 miles per year that's $900 per year. This site says the average car repair bill in 2019 was $319.84. (https://www.supermoney.com/common-car-repairs-average-cost-finance/) Whatever you pay the 'insurance' provider is money that is GONE. You'd be way better putting that monthly payment into a savings account and the money is yours till you spend it. Smarter people than I could probably come up with better options so you can put that money to work for you.

In the above example from laffy kat a 2018 crv converter can be purchased for $150-300 in a quick search. With labor that bill might be $900-1000. I'm fortunate that I could do it myself. At $125 a month laffy kat's putting out $1500/year for the CHANCE that laffy kat needs a new converter. If laffy kat doesn't need one that money is gone.

Personally, I won't do it. I understand it's piece of mind and disciplined payments rather than trusting yourself but I like my money to stay with me.

(edited to correct arithmetic)

[hlthe2b]

24. Don't take for granted that replacement CC's are going to continue to be so available, especially at

an affordable price. You can't legally buy a used one, at least in CO (even if you COULD find one) from a junkyard selling totaled car parts and there was a recent tv news story in Denver that covered the shortages and resultant "grounding" of fleets of vehicles where their CC's were targeted. The #1 targeted autos are Toyotas, especially Priuses for the years 2004-2009 because they not only had a higher amount of precious metals but likewise don't deteriorate as much as gas-only cars. I participate in the AAA program that engraves a unique id number )registered in an international database)with an embossed sticker on it and window sticker warnings. This might afford some deterrence but clearly is not an end-all. Some commented here on having "cages" (shields) welded onto the CCs, but that Denver report suggested seeming emboldened by thieves when they see that so that they vandalize the car (send a message?)

Since my garage is a single car only, all I can do is park as closes to the front door/front windows in the driveway as I can and I frequently will back in. I would very likely hear anyone out there. Caution, though, given recent episodes wherein the thieves assign an armed "look-out" to potentially shoot a homeowner confronting the thief, as happened recently in Metro Denver and elsewhere.

https://www.msn.com/en-us/news/us/jeffco-homeowner-shot-at-when-confronting-attempted-catalytic-converter-theives/vp-AAUDbb9

https://kdvr.com/news/local/denver-man-shot-at-while-chasing-catalytic-converter-thieves/


That said, your comprehensive insurance coverage should already cover cc replacment, no additional insurance needed. Of course you'll need to pay your deductible.

[FSogol]

26. +1. "You'd be way better putting that monthly payment into a savings account and the money is yours"

[lastlib]

19. Alpeduez has the right answer.

Like any insurance, it's a probability game--the probability that the insurer will take in more in premiums that it will pay out in claims.
Do yourself a favor--save the $$ you would pay in premiums toward purchase of a car that's cheaper to maintain, or at the very least, toward the big-$$ repairs you might have if you keep the older car awhile.

[TreasonousBastard]

21. I had Red Auto, whoch is basically the same thing..

I had a small claim and they pald small money. Mechanic told me they pay a set scale and ignore any labor above that.

I cancelled the coverage when I got a new car and they told me I get nothing back because I had a claim.

[hlthe2b]

23. Any "insurance" that pushes this hard with spam/scam calls AND around-the-clock tv ads with

paid personalities SCREAMS scam to me. YMMV.

[Niagara]

27. CarShield is NOT accredited with the Better Business Bureau and is rated F.

https://www.bbb.org/us/mo/saint-peters/profile/auto-service-contract-companies/carshield-0734-310030296



There are currently 2,807 complaints with the BBB about CarShield. CarShield is in the business to make money, not to cover real repair bills.


A person would be better off setting aside the amount of money that CarShield would cost them per month for vehicle repair bills and maintenance.

[Mr.Bill]

34. If you have a problem with a warranty, don't bother

with complaining to the BBB. They have no enforcement power at all. Complain to your state insurance commissioner. If you bought the warranty at a dealership, complain to whatever state agency issues and has the authority to revoke a dealer's license. In my state that's the DMV. Believe me, that will get their attention. Car dealers laugh at the BBB.

[Niagara]

36. Hello Mr. Bill

I would never waste my hard-earned money on an extended car warranty scheme to begin with.


With conscientious basic and preventative maintenance done regularly, an extended vehicle warranty is completely unnecessary. If a vehicles engine is knocking and smoking, this would mean that it's not properly being maintained.

[Mr.Bill]

39. What you say is quite true with a new car.

With a used car with 80,000 miles on it, it's a different story. You have no idea how that car was cared for before the dealer bought it, probably at an auction.

Also, when you buy a new car, it already has at least a three year 36,000 mile warranty, so factory defects will most likely show up while still under warranty.

[Wounded Bear]

28. EVs don't have catalytic converters...

[Hotler]

29. I say no. Take the money for the premium each month and put it a savings account...

for car repairs. Stay on top of maintenance, repair problems as soon as they arise. Allowing problems to go unchecked can cause wear on other parts which cause cost to go up. Read your manual and follow the recommended service intervals. Pick a service provider that you feel you can trust and stick with them. I personally like dealer service centers (same one for 21-yrs.). Why? That's a topic for a different thread.

P.S. Before you make a decision get a list of what exactly they cover and don't cover (the small print). Many times small incidental parts and items are not covered and that is when the cost become a Surprise! at checkout. If you have a friend that is a mechanic have them sit down with you so they can help explain some of the terms, parts and service.

These types of plans are for people that don't know or care about taking care of stuff. In one commercial the guy says "they put in a new motor and a transmission, who does that?" The question should be who lets their engine and transmission get to the point of failure like that. I guess he didn't notice the knocking and smoke coming out from under the hood.

On top of that I bet he had a fair share of out-of-pocket expenses.

Remember if it sounds too good to be true.......

[beaglelover]

32. Probably like Home Warranties, when you actually try to use it the insurance company comes

up with every excuse under the sun why they cannot cover your repair. Those home warranties are something sellers give to the buyers to make them feel comfortable buying the home, but they're in for a rude awakening when they try to use the home warranty.

[Mr.Bill]

33. General tip for anyone buying an extended warranty

from a car dealership. The price of the warranty is as negotiable as the price of the car. In fact, more so. The price they quote you for the warranty is usually double what they pay for it. This is how the guy across from the desk from you in the finance dept makes most of his money. They generally make much more than the salesman who sold you the car.

If they tell you the warranty is 1,500, tell them you will pay 750, then meet somewhere in the middle. Don't tell them you know that's what they paid for it. I don't mind the guy making a few hundred bucks, but not 750.

In fact, negotiate the price of every add-on they try to sell you, if you want that add-on. They try to get you into a mind set that once you step into that office, negotiations are over because you are no longer talking to the salesman. In fact, you are talking to one of the best-paid salesmen in the transaction.

[Emile]

35. Scam! Save your money!

[AngryOldDem]

37. This comes up a lot on Reddit and the consensus seems to be it's a scam.

But, as usual, caveat emptor.

EDIT More deets — A usual gripe seems to be they weasel their way out of paying for what they say they’ll pay for.

[Emile]

38. Read the small print and it will give you all the reasons why

they will not repair your vehicle. They'll have key words like drive train, etc. They are scams!