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I purchased the extended 3 year warranty through Square Trade with the added Accidental coverage (ADH).
1) The Kindle has only been out for a year so long term reliability is still unknown
2) There have been reports of Kindles failing and while Amazon has replaced them without hassle, their warranty is only 1 year.
3) Because my Kindle goes everywhere, dropping it or spilling something near it is not beyond the realm of possibility.
At $359 purchase price, its less than $60 (including ADH) if you use one of their 20% coupon codes. I paid less ($39) because mine is only covered for my $259 purchase price. In order to purchase the ADH option, you must purchase coverage within 30 days of your Kindle purchase.
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