It depends on how likely it is that the laptop will be damaged, and whether you can afford to replace it. If you live in a dorm or or some other situation where you can't control the idiots that might be near your laptop, then you should absolutely get the accidental damage warranty.
So far I haven't needed it. When I got my Dell, I got the 3 year next business day repair which covered normal wear and tear. It was a great investment; my screen died. Since then I've beat the keyboard to death and just about killed the trackpad buttons.
P.S. Buy the machine from the manufacturer, not a retail store. I have heard a bunch of horror stories about both stores. I like Dell, but others are good.
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