Extended warranties are the highest profit margin item for most manufacturers, which means they are a bad deal for you.
I am not saying that insurance to protect you from catastrophies is a bad idea, what I am saying is that extended warranties are way over priced. How many of you would think nothing of paying $20 a gallon for gas today? You all understand gas pricing, and realize that would be way too high. How many of you understand the economics of extended warranties? When you buy these extended warranties, you are, in essence, paying $20 a gallon for gas. If I told you that the average extended warranty costs Honda $69 and they charge $690 each, you would probably think their profit is excessive. Guess what guys that is what they are doing. There are going to be a few people who will tell you about how much the extended warranty saved them once, just like you will read about how rich a state lottery made some individual, but what about all of the rest who paid big bucks and got nothing in return?
One of the things to note is what they don't cover. Like all insurance they have exclusions. Many of them have conditons (like going in for a check up on a certain date) that you must comply with, which many people forget.
Most products tend to fail initially, if they are faulty, and then much later when they wear out. In between they generally perform flawlessly. Guess what period the extended warranty covers - that flawless period.
I have had many new motorcycles and products during my lifetime and the only one that I can think of that failed during the extended warranty period was a computer monitor.
In summary, extended warranties are a very, very bad buy overall for consumers. Instead of buying them, invest the extended warranty money yourself and self insure. In the long run you will be much further ahead.
I was quoted $500 for my '05 CBR1000RR, so I know they can afford to sell it at least that cheap. I actually bought it with a twist....it is through my local dealer...same coverage exactly as the Honda plan, but also covers regular maintenance. ie. Oil changes, tire changes, valve adjustments, etc. I figure I'll get most of the moneys worth out of it due to oil changes and tire changes alone.