I would recommend against these sorts of warranty protection. They can be notoriosly (the company NEW is
horrible, never get their plan, although I believe Best Buy's is different) bad products with horrible support. This is not the same as something offered through the company (such as Dell accidental damage protection) but outsourced.
1.) to truely calculate how much it is worth, keep in mind the $60 price. If you use it on a $299 ipod you still only save $240.
2.) The retailer covers the product for 30 days in the case of Best Buy, and Apple for an entire year. Unless you break it accidentally you should be covered, especially with a company with a reputation such as Apple.
3.) These are outsourced, so neither Best Buy or Apple is trying to protect its reputation. Instead, it is a fairly nameless insurance company or subsidiary who just wants to make a profit. Imagine how bad other forms of insurance are, not make it worse because unlike health insurance, many people will get so frustrated they give up.
4.) They have horrible reputations for customer service. Do a google search and you will read horror stories from those trying to seek their services. If you deal with them the 5 times necessary to get a new product (hopefully the ipods will not break down that much) you will have wasted so much time and gotten so frustrated that you will wish you had just bought a new device. I can't imagine anyone surviving 5 encounters.
So, while I completely understand that it would be well worth $60 to guarantee that your ipod will work for the next 3 years (It makes me question it sometimes), that is far from what you are buying. Do a google search on AIG WarrantyGuard, or for a similar product that other retailers use (although they
could be substantially different, look at this amazon link that has an average of 2 out of 5 stars
http://www.amazon.com/gp/product/cu...tronics&qid=1189886737&sr=1-1#customerReviews
Plus, read the fine print in the link, I think it says it doesn't coverage accidental damage.