Is CarShield a Scam?

CarShield is a vehicle service contract marketing company headquartered in St. Peters, Missouri. The company markets plans administered by American Auto Shield under the parent entity NRRM LLC. In July 2024, NRRM LLC reached a $10 million settlement with the Federal Trade Commission over allegations that CarShield's advertising overstated the scope of coverage and used misleading celebrity testimonials. The FTC distributed approximately $9.6 million in consumer refunds in December 2025. CarShield's plans are accepted at licensed repair facilities nationwide. The BBB logs several thousand complaints over a three-year period, with recurring themes around claim authorization delays and difficulty canceling contracts. Consumers who purchased before the settlement cutoff may be eligible for FTC refunds through the official FTC refund page.

Government & Regulatory Actions

  • FTC settlement July 2024: NRRM LLC (CarShield / American Auto Shield) settled Federal Trade Commission charges for $10 million related to deceptive advertising practices. The FTC alleged the company's ads overstated coverage and used misleading celebrity endorsements.
  • FTC consumer refunds December 2025: The FTC distributed approximately $9.6 million in refunds to consumers harmed by CarShield's advertising practices.

What the Evidence Shows

CarShield has documented regulatory action from a government agency.

Related

Frequently Asked Questions

Was CarShield sued by the government?

Yes. The Federal Trade Commission reached a $10 million settlement with NRRM LLC (CarShield/American Auto Shield) in July 2024 over allegations of deceptive advertising. The FTC alleged that ads overstated coverage scope and used misleading celebrity endorsements.

Are CarShield complaints common?

The BBB logs several thousand complaints against CarShield over a three-year period, well above the category average. Recurring themes include claim authorization delays, pre-existing condition denials, and cancellation difficulty.

Is the BBB F rating a sign of fraud?

The BBB rates based on complaint volume, responsiveness, and transparency, not whether a company is fraudulent. High complaint volume at CarShield's scale indicates service problems consumers should weigh before purchasing.