Is American Auto Shield a Scam?
American Auto Shield is the vehicle service contract administrator for CarShield, operating under parent entity NRRM LLC and headquartered in Westminster, Colorado. When consumers purchase a CarShield plan, American Auto Shield is the entity that handles claims authorization and processing. In July 2024, NRRM LLC - which includes the CarShield marketing operation and American Auto Shield's administrative role - settled FTC charges for $10 million related to deceptive advertising practices. The FTC distributed approximately $9.6 million in consumer refunds in December 2025. Consumer complaints about CarShield regarding claim authorization ultimately involve American Auto Shield's claims operations.
Government & Regulatory Actions
- FTC settlement July 2024: American Auto Shield is the administrator for CarShield / NRRM LLC. The FTC settlement with NRRM LLC for $10 million covered the entire CarShield marketing and administration operation, including American Auto Shield's administrative role in the alleged deceptive practices.
What the Evidence Shows
American Auto Shield has documented regulatory action from a government agency.
Related
Frequently Asked Questions
Is American Auto Shield involved in the FTC CarShield case?
Yes. American Auto Shield is the claims administrator for CarShield/NRRM LLC. The July 2024 FTC settlement covered the entire NRRM LLC operation, which includes both CarShield's marketing and American Auto Shield's administrative functions.