I agree, the extended warranties are a rip off. They're designed to make a profit, not payout claims, and IIRC there were some lawsuits over a chain of dealerships that were owned by a major invester in an extended warranty company. I can't remember the name but the point is that the contract terms were to the point of being fraudulent. IMHO, budget for repairs instead of an extended warranty. You might have to pay for repairs but if you pay for an extended warranty you know you're going to pay.