Extended warranties are a very high profit margin product, meaning that the cost is generally much higher than the risk they insure against.
It's a bet - on your end you are betting that your item will fail before the end of the term (when you will get another renewal notice at "significant savings.") The insurer is betting it won't. Guess who has done the most homework on the likelihood of failure?
Unless you purchased something that has a high failure rate or if you can't handle the risk (meaning that you could not afford to repair the item and would have to give up using your trailer) you're better off putting the money in the bank.
Don't think of it as a way to save money. It isn't.
My opinion only, of course.
Keith
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