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American Auto Shield

Developing and administering vehicle service contracts and mechanical breakdown insurance nationwide since 2002.

Core Administration Established Bootstrapped
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Overview

American Auto Shield (AAS) is a developer and third-party administrator (TPA) of vehicle service contracts (VSCs) and mechanical breakdown insurance (MBI), headquartered in Lakewood, Colorado. Founded in 2002, AAS designs, underwrites, and administers aftermarket protection products for cars, trucks, motorcycles, and ATVs -- including high-mileage vehicles up to 250,000 miles.

AAS operates primarily as a B2B provider, partnering with sales and marketing organizations that market VSCs under their own brands. The company is best known as the claims administrator for CarShield and CARCHEX, two of the largest vehicle service contract marketers in the United States. When consumers file claims under these branded plans, AAS handles adjudication, repair authorization, and payment through its in-house ASE-certified claims team and the Shield Repair Network.

The company distributes through a broad set of channels including automotive dealers, independent agents, direct marketers, membership organizations, and lenders. AAS has built a reputation for compliant, consumer-friendly product design backed by in-house regulatory research capabilities.

Products & Services

Vehicle Service Contracts

AAS offers a tiered suite of VSC plans for passenger vehicles, covering everything from comprehensive exclusionary coverage to targeted powertrain protection. Coverage Tiers:

Key Features

  • Diamond (Exclusionary) -- highest level; covers virtually all mechanical components
  • Platinum (Component) -- named component coverage across major systems
  • Aluminum (Component) -- streamlined coverage focused on key electrical and mechanical systems
  • PT Gold (Powertrain Expanded) -- eligible up to 250,000 miles; covers drivetrain plus select electrical
  • Gold Select (Enhanced Component) -- powertrain plus extended electrical coverage
  • Powertrain (Enhanced) -- core drivetrain protection for high-mileage vehicles
  • Roadside assistance (towing, tire, lockout, fuel, battery, winching)
  • Rental car reimbursement upon repair authorization
  • Trip interruption coverage (breakdowns 100+ miles from home)
  • Luxury Electronics Package (navigation, displays, cameras, voice systems)
  • Market labor rate waiver
  • Emissions component coverage
  • Rideshare driver protection

Electric Vehicle Plans

Dedicated VSC plans for EVs, including optional high-voltage battery coverage:

Key Features

  • EV Drive Unit Only -- electric drive unit, water pump, drive axle
  • EV + High Voltage Battery -- adds high-voltage electrical, battery management system, cooling, steering, A/C, and more

Motorcycle and ATV Coverage

Coverage for motorcycles (including off-road) and ATVs with unlimited mileage plans:

Key Features

  • Platinum Plan -- named component coverage across engine, transmission, drive assembly, cooling, electrical, steering, suspension, brakes, electronics, and fuel system
  • Powertrain Essential -- core drivetrain: engine, transmission, primary drive, drive axle, seals
  • Optional: Luxury Electronics and Touring Package (GPS, LCD screens, cruise control, intercoms, seat heaters)

Claims Administration Services

White-label claims adjudication for VSC marketers and distribution partners. AAS manages:

Key Features

  • Claims intake and adjudication
  • Repair authorization and payment
  • Shield Repair Network (preferred repair facility management)
  • Customer communications and dispute handling

Product Development and Compliance

AAS develops consumer-facing VSC products and handles regulatory compliance in-house:

Key Features

  • Flexible aftermarket product design for dealer, agent, direct, and lender channels
  • In-house regulatory research ensuring state-by-state compliance
  • Tailored marketing solutions for distribution partners

At a Glance

Founded
2002
Headquarters
Lakewood, Colorado, USA
Employees
201-500
Funding
Bootstrapped

Category & Focus

Category
Core Administration
Subcategories
Vehicle Service Contracts Claims Administration Mechanical Breakdown Insurance Third-Party Administration
Insurance Verticals
Specialty/E&S P&C Personal
Target Customers
Carriers, Brokers, Agents/Agencies, Consumers, TPAs

Customers

  • CarShield (NRRM, LLC) -- primary distribution partner; AAS administers approximately 90% of CarShield contracts
  • CARCHEX -- administers a portion of CARCHEX-branded plans
  • Individual vehicle owners (especially high-mileage vehicle owners)
  • Motorcycle and ATV owners
  • VSC marketing companies seeking a backend TPA
  • Automotive dealers and F&I departments
  • Direct marketers, membership organizations, and lenders

Last updated: 2026-04-09