The Simple Dollar - 25 Rules to Grow Rich By #25: Warranties
I often preach to my clients about the evils of warranties on consumer electronics. Although it is true that there is always a chance that an expensive computer, television, etc. may break and set you back a fair amount of money, I contend that in the long run, you will pay more money in warranties than you will to replace the items you've been insuring.
Personally, I save insurance (warranties are essentially a type of insurance) for cases where I need to protect against financial disaster- disasters that would be life-damaging. Follow the link above to one of my favorite financial blogs, The Simple Dollar, for more insight on the subject.