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Consumer Reports did an article about extended warranty programs in general (not just for vehicles) a few years back, and said that on a national average they pay out 1 to 10, which isn't very good odds.
If you read through the deductible, coverage limits, and exclusions you may find it's not as protective as the people selling it would like you to think.
I was offered an extended warranty my phone, and when I added up its cost over 2 years and considered its deductable, it would be cheaper to just buy a new phone than use the policy during that time.
Yesterday, I received a letter telling me the bumper to bumper coverage on my car is about to expire, and recommending I buy an extended warranty, telling my how expensive a transmission is to replace - and totally ignoring that the policy would not cover my transmission, since it is still covered under the car's drivetrain warranty that has several years and miles left.
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