Lou's experience is typical of extended warranties. Insurance companies are not in business to lose money, so the chances the warranty will pay off for you is very slim. So it all depends on how much peace of mind means to you. To me it means nothing - never bought an extended warranty, never will and never wished I had.
x2. Not only do insurance companies make money on extended warranties, but dealers/salesmen also make big bucks on selling extended warranties on products. That's a clue as to how much they expect to pay out.
I've never bought an extended warranty on a car or anything else.
I've owned many a car, kept all of them well past 100K miles and never had anything go wrong in the first 100K miles (the limit of most/all warranties) that would have been covered by an extended warrranty.
If your tempted by an extended warranty , use this strategy.
Find out how much the extended warranty costs
put those $ in a savings account
use those $ if you need to to cover any repairs the warranty would have covered. (most likely you won't need to)
repeat on each vehicle you buy.
unless your extremely unlucky, you'll end up with a very nice balance in your savings account over the years.