I've had two experiences with using extended warranties, both positive:

1) Bought a 50" LCD projection TV from Circuit City and bought their 3-year warranty for $400. Eighteen months later, when the bulb in mine went out, I found out that the projection bulbs (rated at 10,000 hours by Panasonic) typically last around 1500 hours. The bulbs cost $350 dollars. I had mine replaced twice during the warranty period, no questions asked. A technician came out the first time and replaced the bulb at no additional charge to me. The second time they sent me a bulb Fed-Ex. To me, it was well worth it.

2) My wife bought a new washer and dryer at Sears. Since the washer was a new design (low water usage, low power usage) I bought the 3-year Sears warranty. Thank god. The washer was a nightmare. We had a tech out to our house 5-6 times within a year. Each time he replaced different parts. I found out that there was actually a class action lawsuit against Whirlpool over this washer. I was even contacted by a lawyer asking if I wanted to be the class representative for Michigan, which I declined. I documented everything, including my discussions with the lawyers, the techs (who all acknowledged that this washer was a piece of junk at $900), and Whirlpool Customer Service (who were useless). I kept after Sears Customer Support, armed with my documentation, and they eventually took the old washer and gave us a $600 credit towards a new washer of our choice.

The point is: Not ALL extended warranties are useless. You just need to be persistent.

 

Buying an extended warranty and DON'T even know the TERMS AND CONDITIONS of the contract. Shame on you, but I is easier to BLAME everybody else!