I have what is called Mechanical Breakdown coverage through my insurance company. It is only offered on new vehicles (under so many miles). I pay over the course of 10 years a total of $750 (it's ~$75 a year), and in the event that anything breaks/stops working - electrical, mechanical, A/C, transmission, engine, whatever (as long as it's not general wear and tear) they cover it completely after a $250 deductible. I choose where it gets repaired; no having to go to an approved place or dealership unless I want to, I even get a rental car thrown in with the coverage while vehicle is being repaired. The coverage is for 10 years/100K miles, no gotchas or small print.
I can cancel it at any time, but once I cancel, I can't put it back.
I have a vehicle with a CVT transmission, so I'm keeping the coverage the full 10 years since it would be around $4,500 to replace if it goes bad, but for the money, the warranty is a decent gamble for me. If I had a regular transmission tho, I likely would not have gotten this (or any) extended warranty. If you have a generally reliable vehicle, I don't see the point of extended warranties myself, but I did take a chance with the current one, so I'm paying extra for the risk.