[RallyRcrr]

If you're affiliated with the military at all try the extended warranty coverage provided by USAA. Its nice. I've got one for my 335xi. They have outstanding customer service and the prices are about industry average which means well below what you'd get from a dealership. It also has no deductible and covers everything but the wear parts and cosmetic items. The only caveat to USAA is that its only for current or prior US military personnel.

The lowest I've ever found for a BMW was about $1000-1100 per year of coverage. I've seen as high as $1800 from some places. My current 2yr/24,000 ran me $2250.

Its true that you might never need the extended insurance, but if something does go wrong it usually pays for itself rather quickly. The insurance game is purely a numbers racket. Profit from customers have to be more than the payouts made by the insurance company. They wouldn't offer it unless they thought they were on the better side of the odds. But when they do have to pay the benefit to you is peace of mind that all costs "should" be covered. They might still try to pull a fast one if the company isn't reputable.