Like most generalizations it's usually true but not always. For big ticket items where the repair cost would be a killer sometimes the warranty is worth the protection. The fallacy many people make is that they think if they pay $1500 for the warranty and only need it to cover $400 in repairs they were on the losing end. That's not true, the expectation with ANY insurance (that's what these warranties really are) is that for the vast majority of purchasers the insurance will cost more then the financial benefit you get. You don't really buy them expecting to break even or come out ahead, you buy them for piece of mind... Just like you buy homeowners insurance. Just because you'll almost assuredly NEVER have your house burn down very very few people are willing to risk that cost should it happen. Is it worth it on every $100 printer you buy, almost definitely not. However, if you are buying that printer as a give for your grandmother who is living 3 states away on social security perhaps it might make sense so she doesn't fret about the printer breaking and not having the money to fix it.