I have the ORHP home warranty that covers all appliances, plumbing, electrical, A/C, heat, etc. I pay the annual premium and if something breaks, I only have to pay my deductible ($75) for repairs, no matter what it costs them. I've used them for years on a number of homes, they've done a great job and I've gotten more than my money's worth.
Since I have no intention on cancelling my ORHP warranty, why should I add another 10% on to the cost of a new A/C system to get 10 years of labor coverage over and above the standard 1 or 2 year labor and 10 or 12 year parts warranty that comes with the new equipment?
Amortizing the cost of the extended warranty over 10 years, it would cost me MORE than what I'd pay for a deductible if it broke down once a year, every year.
Convince me whether I should get the warranty or forget it, please.