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I'm kinda with. jmciver on this one. From an economic stand point it's always better to self insure. And usually warranties aren't a great deal.
They usually factor the worst everything can go wrong, add premium labor costs, and then add an opportunity cost like a high interest rate to get their price. That's before any bonuses or kickbacks for those who sell the policies. Add in that you usually have to pay a minimum fee and/or something might not be covered; and it's normally a bad a deal.
As a regular guy with a couple degrees on the wall, I take a couple $ per month and put it into a Savings account, and every year put most of the unused part into a Laddered CD plan. That monies will always be "earmarked" for my insurance and warranty needs. And it's mine and earns 2% interest right now for me.
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