I think the key is that they are calling it an "extended" warrantee plan, meaning it adds to the existing 1 year "limited" warrantee."
With that it mind, it does not overlap with the warrantee that comes with the bike.
$400 for an additional 3 years of coverage. Why spend the money for sure when you have a chance and a good enough chance that the dealer and whoever is financially backing this contract can both make money?
Insurance is for things that can be high cost. How high can you really expect a repair to be?
Yeah it COULD be $2,000 but if we thought that was likely, would we have bought this thing to begin with?
Furthermore, after year 4, what will you do to mitigate this risk, which by the way will be increased now due to the bike's age?
I say bank the 400 bucks now to help defray repair bills down the road.
Many of the bikes we see for sale have the extended warrantee. What were they thinking? My point is that many things may cause one to sell the bike before the coverage expires. Yes it can be transferred, but the resale value of the bike is only minimally increased, if any at all. It’s most likely a total loss either way.
Yes these things are very complex, but so are our cars and just about any other modern appliance.