Rules for extended warranties:

1.) It's a gamble, like any insurance. Decide itf it's worth it based on your own calculations and piece of mind.

2.) Only buy OEM warranties - they will be in business and will pay out when needed. Never buy 3rd party ones - they may be out of business, and they are reluctant to pay up.

3.) Repair costs are only going up, they are not getting cheaper.

4.) Always buy them online (from a dealer in a low-cost area) - they are 30-50% cheaper for the exact same thing.

My experience with them has been money well spent. After the initial warranty:

- One car needed 2 CD players replaced ($1,000), a power steering pump ($400), and two sets of shocks and struts. ($1400)
- Another car needed a new transmission and bingo, that was $4000 right there.
- Another car was struts ($400), speaker ($200), ignition compenent (can't recall name) ($300)

So that's close to $8,000 in repairs. Cost of warranties ~ $2,500.
Plus, the free rental due the repairs, which was around three weeks total (inc. a couple weekends)

It has been worth it to be, but YMMV.