Information and Alerts

Pattern of Complaints

On May 27, 2021, BBB found a pattern from complaints and customer reviews regarding American Auto Shield’s advertising, guarantee or warrantee, and/or customer service issues. Consumers allege when signing up for coverage through vendors and/or sellers of the American Auto Shield agreement that they are unaware of the limitations of the coverage until they attempt to utilize the service. Consumers allege they are required to cover expensive engine and/or transmission teardowns and vehicle rentals while the company determines coverage eligibility, a process some consumers reported taking long periods of time. Consumers also allege that advertising for these services claim broad coverage claims and ease of use while American Auto Shield’s agreement includes detailed exclusions that are only disclosed if the consumer reads the agreement after the sale.

Additionally, BBB has identified concerns regarding American Auto Shield’s relationship with sellers of the agreements. Consumers appear unaware that other businesses facilitate the sale while American Auto Shield facilitates the terms of the agreement and determines contract eligibility.

American Auto Shield (AAS) Response;
AAS has taken great pride in achieving and maintaining our A+ rating with the BBB through a number of initiatives, most notably:

o creating and delivering strong value for the services that our contract holders purchase;
o our on-going pledge to deal with consumer inquiries in an ethical and straightforward manner;
o cultivating a previously strong and collaborative relationship with the Denver BBB;
o providing immediate and comprehensive case management and responsiveness to any and all BBB complaints received, including dedicated technical experts who review every BBB complaint and case resolution escalations for all such matters.

AAS agrees that customer clarity is essential to providing best in class service and for a full understanding of the difference between the Selling entity and the entity responsible for administering claims under the Vehicle Service Contract. While we believe that we have clear disclosures in place to provide clarity regarding coverages and contract holder requirements, we also acknowledge that additional steps can be made to help improve communication clarity. Below are some examples of improvements implemented to provide greater clarity and support for our customer:

o During any sales process, our Sellers clearly explain that contracts will be administered by a separate entity.
o Additionally, the separate entity (namely American Auto Shield) is prominently listed on all contracts issued.
o Contracts are also immediately either mailed or e-mailed to all contract holders.
o We have added AAS logos and language to consumer contracts, welcome letters, and emails from the Selling entity.
o Contract holders have 30 days to review purchased contracts, including coverages and exclusions.
o If, in the first 30 days, a contract holder determines that the contract will not meet their needs, the contract will be cancelled for a full refund if requested.
o We have worked with sellers to revise disclosures on TV ads, radio ads, websites, and in other marketing materials.
o There has been a significant reduction in the requirement for 3rd party inspections through our work with repair facilities to facilitate their collection of data and photos to verify failures.
o We have established automated follow-ups for information requests from repair facilities and contract holders if not received within 3 days from original request.
o We have increased first call claim authorizations to an average 37% of claims reported.
o Significant improvements have bene implemented in adjuster training and tools to address common failures and their resolutions for most complicated engine and transmission failures, thereby avoiding the need for teardowns.