I suppose a lot of people have already heard this or figured it out, but I think it bears repeating.
There are two classifications of "insurance" - insurance offered to you as a service, and "self-insurance".
I self insure as a general rule unless 1) I think the insurance premiums will be less than the expected cost of repairs, or 2) I can't afford an expensive repair and would rather pay a predictable amount even if it's not certain I'll need it.
Insurance carriers make money on policies, on average. This means that the statistically expected cost of repairs is significantly less than the insurance premiums. Of course, there will always be people who are unlucky to experience an unusual and unusually expensive repair. I've had a few in my time - a Fiat that required a new differential at 12,000 miles; a Mazda RX-4 that needed new engine seals at 48,000 miles, and an Audi that needed a new transmission at 30,000 miles. The first two were covered by warranties, the third wasn't but I got Audi to pay for the parts and ⅓ of the labour by being a polite but insistent pain in the ass.
I've never bought an extended warranty on a vehicle, and won't start now. Of course, YMMV. Every person has his or her own risk tolerance, and some value the peace of mind extended insurance buys. Just remember that this is what you're paying for, and if it's worth it to you, do it. There's no one "best answer" for everyone.
There are two classifications of "insurance" - insurance offered to you as a service, and "self-insurance".
I self insure as a general rule unless 1) I think the insurance premiums will be less than the expected cost of repairs, or 2) I can't afford an expensive repair and would rather pay a predictable amount even if it's not certain I'll need it.
Insurance carriers make money on policies, on average. This means that the statistically expected cost of repairs is significantly less than the insurance premiums. Of course, there will always be people who are unlucky to experience an unusual and unusually expensive repair. I've had a few in my time - a Fiat that required a new differential at 12,000 miles; a Mazda RX-4 that needed new engine seals at 48,000 miles, and an Audi that needed a new transmission at 30,000 miles. The first two were covered by warranties, the third wasn't but I got Audi to pay for the parts and ⅓ of the labour by being a polite but insistent pain in the ass.
I've never bought an extended warranty on a vehicle, and won't start now. Of course, YMMV. Every person has his or her own risk tolerance, and some value the peace of mind extended insurance buys. Just remember that this is what you're paying for, and if it's worth it to you, do it. There's no one "best answer" for everyone.