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This topic has been covered here and on other forums many times. Do a search for "extended warranty" and you will have plenty of opinions to study.
There is always someone who steps up and says one saved them big time, but the deductibles and exclusions can bite you. Before you buy, keep in mind that the dealer selling that contract keeps about half for commission, and the issuing company has to make a profit. That doesn't leave a huge pot to pay claims, does it?
I agree with Jamie about saving that money for future repairs. You'll be money ahead, but it requires discipline.
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