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I guess it depends on what you can potentially afford to lose. If one of my gadgets broke I'd just go out and buy a new one - most of the time I've sold them on long before they get that old. The only item I've ever had where I wished I had paid for a warranty was my apple mac which died after 18 months - so I ended up buying a new windows laptop.
The Kindle screen can be fragile so I can see why some people feel the need to insure them. For me personally at this price level and the fact that I treat mine with kid gloves, I won't bother.
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