I might not put this issue to bed but I can at least tell you my thoughts. I know many people swear by them and I know some people who say they usually get their money's worth out of them.I am fine with people having that point of view. However, in my experience I have not gotten my money's worth out of them and I usually say that in most cases it isn't a good idea to get the extended warranty. Now before you get mad at me I can show my work behind how I came up to this reasoning.
An extended warranty is basically insurance. And the price/cost of insurance is driven by 4 factors: commissions, overhead expenses, the statistical probability of the event occurring, and profit. The cost of your warranty has to cover all of those things and I do not like the sound of that. What I actually would recommend is to set aside the amount of most extended warranties and I would be able to cover average repair costs and still come out ahead.
Generally, extended warranties are extremely profitable for those that are selling them and a bad idea for those buying them.
