Cars are generally that complex these days it's nearly impossible to fix some of the faults that appear for little or no reason. Bearing this in mind, I bit the bullet and took out a 2 year policy with Warranty direct. It cost about £550 and I got a "free" month so am covered until September 2014. Works out to less than 75p a day! Check them out on Car Warranty & Extended Warranty Specialists - Warranty Direct Ltd
I had my Xantia covered by them until it became too expensive due to its age, and most years I broke even at least. I sold it soon after. My last car, a Picasso, was not covered as my son was at Uni and I thought I couldn't afford it. Big mistake! It needed a clutch, a steering rack and aircon work while I had it. All of which would have been covered (not 100% due to the age of the vehicle) had I had a policy.