What LinuxGigilo said. It's from date of purchase of the iPod, not date of purchase of Applecare. It will never cover your iPod for more than one extra year. Apple obviously did some number crunching and trending and realized that they couldn't offer the standard three-year coverage that they offer on other products, because two years is probably the average lifespan of the batteries. With three years they could pretty much count on having to replace it.
All extended warranties are based on the fact that most people never claim anything. They make 50 cents on the dollar or better.
All extended warranties are based on the fact that most people never claim anything. They make 50 cents on the dollar or better.