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It all depends on how much the Kindle 4 Basic costs, and what the warranty costs. If the warranty will cost more than about $20, I would just take the chance, and replace the Kindle if it ever dies.
As one of my economy teachers once said (which is quite true, IMHO):
"Insurance? Useless for many devices and circumstances. Only EVER insure something that you can not easily replace or recover from yourself if you lose it."
So he'd say:
"You own a house? Certainly insure that."
"Got a Leica M9 with 50mm/1.4 lens, costing $10.000? Please go ahead and insure it."
"Got a Kindle 4 Basic costing $69? Don't even consider it. Just replace it yourself."
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