I bought my first Kindle on December 2007. On January 2008 I wrote Squaretrade about insuring the Kindle and it was not possible. They started letting people insure it under PDAs a month after and they said I was too late for accidental damage (which royally _____ me off but that's another story).
The Kindle works perfectly and there is not one scratch on it. I just got a new one through the Oprah discount because I'm sure I'll be able to flip mine for $310 on Craigslist in a couple of weeks when the discount is gone. I can now take advantage of the accidental damage plan. Squaretrade sent me a half off coupon because they denied me adding the accidental damage plan, so it's 2 years warranty plus accidental damage for $48 (if I drop it, step on it, spill soda on it, it's a $50 replacement, unlimited times, during those two years... so one replacement is $98... cheaper than Amazon! ... two replacements would be $148 total or $74 each, and it keeps going down after that).
I don't use my Kindle as much as I'd like because I'm terrified of damaging it. Having that protection will allow it to use it a lot more