As a rule, I do not buy extended warranties. These are huge profit makers for those that sell them. They figure the average repairs for a vehicle, add in the company's profit, and then add the seller's commission (often 100%) and you have your premium. If you have average repairs or less you lose, if you get a vehicle that has much more than average repairs, you win. (I'm not sure that is a game I want to win!) Personally, I feel that you need insurance for those things that you can't afford, a total loss, or major damage to your home for example. I feel that I can pay for repairs to a vehicle after the warranty expires. I wouldn't be happy, but it wouldn't break me either. That said, be very careful who you buy your warranty from. Many of these companies are here to collect your premium, and long gone when it is time to pay a claim. Some companies also exclude almost everything. The safest warranty (but probably also one of the more expensive) would be to buy one right from the manufacturer (GM for example), they usually provide fairly decent coverage and are anxious to treat you pretty fairly in hopes of selling you another vehicle eventually. They also have the advantage of being accepted at any GM dealer, anywhere in the country, which may not be true of some of the independant warranty companies.