I know there are a lot of differing opinions on extended warranties, but I am 100% against them. They aren't doing you a favor because you are a nice guy and they like you. They are doing it because they make a lot of money selling them. They know that the odds are far greater that you will pay more for the warranty than you will ever claim against it. Its like gambling in Vegas....every so often someone does beat the house, but those guys are few and far between and it happens so irregularly that they can afford to take a loss with one guy because the next 15 or 20 make up for it. You're better taking the money you would give them and putting into a savings account. If you have a major repair, use that money to pay for it. But when you don't, you have a little chunk of money sitting there once your car has been traded, sold, stolen, whatever. Those warranties are full of deductibles, disclaimers, exceptions, limitations and every other way they can think of to get out of paying for your claim.