A company doesn't stay in business if it doesn't turn a profit. So as it might work out for some people, looking at the big picture most people lose out on extended warranties.

Also I work with a guy who bought an extended warranty for his Ford F150. His motor dropped at about 75,000 miles and the warranty company would only pay for to the point of failure. Then once they hit around $2,500 they brought the fine print out and said the max reimbursement had been met and they wouldn't pay for anything else. The repair cost around $7500 for a brand new ford motor and install. He received a check for the max reimbursement amount of around $2,500.