Thanks for the help

I will go with the consensus and spend the money on a good case insead. The only thing I've ever bought insurance for is my Macbook and I managed to claim well over its value in repairs over 3 years so in some cases it can be very benificial.
I had a quick look through the UK retailers on the Kobo site and found that John Lewis does 2 years warranty. My local store is out of stock but I'll wait until they get more later this month.