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Not worth it. The warranty companies know the averages and they're in their favor. On average the customer pays more than he receives. And then there's the issue obbop brought up.
That used to be my viewpoint too.
One flaw with your argument is that when a customer gets his car repaired in his own nickle, his chances of getting hosed on the price and getting charged for unecessary work or work that wasn't even done is relatively high.
A shop is much less likely to pull that same B.S. on an extended warranty company.
And, if you buy your "extended warranty" from the car manufacturer, the chances of them dropping coverage because they went out of business are very slim.
Only buy a policy backed by the manufacturer and shop around online for the best price. I have recently bought GM and Acura policies for about 30% off suggested list price. If you buy a policy at a dealer, they will often sell you the policy at above suggested list price.
Take look at the best price you can get and think about what expenses there are good chance you will have during the extended coverage. When I can get an extra 4 years of very complete coverage $0 deductable on an expensive complex car, from the manufacturer for around $1200, all it would take would be one relatively minor job and I would be money ahead.
And remember, it's not what the repair costs the warranty company that counts, it's the expense the customer avoids by having the policy. That's what that same trip to the shop would have cost the customer if they were paying for it on their own.
