Ever try getting out of buying an extended service plan? No matter how many times you decline, there is always another person trying to get you to buy it. Very few items are worth having an extended service plan on. The only time I have been able to justify it, is on a mobile device purchase (laptop, mp3 player, cell phone). These things seem to get bounced around enough that they break sometime after the initial manufacturer warranty (just make sure to keep the extended service plan documentation). So besides these items, it’s almost completely worthless to buy an extended service plan, or in other words insurance.
Instead, self-insure. Each time you want to buy an extended service plan, take what you would have spent and put it into an interest bearing account (see previous post about Savings and ING Direct). If a product you have purchased breaks, use this account to buy a new item or have it repaired. Assuming you have relatively good luck in the beginning, the account will grow faster than what you spend on buying new items and fixing items. You’ll end up coming out ahead.