Also think about the fact that nothing will be 'fixed' until the repair is 'approved' by so called 'warranty' company.. But, like was said, it's a 'service contract' is all.
Just read all the fine print and if that's a yearly premium.. You would be better off just banking that money and when/if you need service, just get it done and take it out of your own 'fund' and eliminate the middle man.. You will still have to do the leg work.. It's not like you drop off your rig and they just fix anything at your request. I'll bet after you make a couple of claims, they will drop your coverage or increase your premium next time.
Good luck! Mitch