I always tell customers/friends/family about extended warranties: 1) There is no such thing as a bumper to bumper, no matter who tries to sell it to you that way. 2) Make sure you read the contract and understand what you are being sold and what's covered or not covered. 3)If you are going to buy one, TRY and stick to the manufacturer extended warranties, not some aftermarket one you got a phone call on or a letter in the mail. That doesn't mean there aren't decent aftermarket ones out there, but again, make sure YOU read the contract and understand what you are buying.
I dealt with an aftermarket Mercedes policy the other day and the adjuster told me that they had spent almost 30k in claims on the contract and the customer only paid 6500 for the policy. In my eyes, that's a damn good deal for the customer, just saying. BUT I've dealt with many that don't cover hardly anything....again, it's the customer's responsibility to read the contract. If you want to sign away without reading it like a Congressman, then you'll probably get what's coming to you.