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It's really up to you. If you never use it then it is a waste of money....but if you do use it....it pays for itself once in those 2 years.

My last G4 iMac had the Superdrive go out and the screen started to heat and warp right after the initial 1yr warranty ended. Luckily I bought AppleCare so all of this was free.
 
I have benefitted from the fact that with applecare, I can call technical support for networking issues because my AEBS is part of my computer and, thus, covered by applecare. Given that I am not an expert in networking, I have called at least twice when my network mysteriously dropped.
 
I haven't purchased AppleCare yet, but I plan to before my one year runs out. I had to take my G5 2.5 in last week because of problems with the logic board. This one repair runs about $1,000. I usually don't purchase any kind of extended warranties because I figure if it's a dud or has a problem, I'll notice it in the first year. With this computer costing so much for repairs though, I think I'll get AppleCare so I will have some peace of mind. By the time my AppleCare runs out, I'll probably be ready to make my next Mac purchase :)
 
I've had Applecare for three years now, for my iMac G3 600Mhz.

The only thing to have happened in that time was the CD Drive went out on me. I can't imagine that it was a very expensive fix, it probably would have cost less than three years worth of AppleCare.

On top of that, the Apple Store I took it to wanted me to spend $50 so that they could back up the hard drive, in case they lost the data. I was a little put off by that because it seems like they are trying to make money at each step.

The CD Drive is fixed/replaced though and works fine now.

Every now and then my screen will kind of flicker or warble, so I am wondering whether or not I am about to lose a graphics card or something. It doesn't do it all the time, but every now and then it will have periods where it does that. Hopefully Applecare will take care of that when the time comes. I wonder if they will do it beforehand.
 
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