I usually skip extended and "accident" warranties, but in the case of the Apple Watch Sport I bought I figured the additional $50 for Apple Care + was worth it... mostly because of how exposed a watch is. My iPhone 6 is protected by a case and it also spends most of its time in a bag or pocket (especially now that I don't need to get it out as often), but the watch is always out there (I suppose my shirt or jacket sleeves might offer some protection).
It's a first version and we don't know how well it will hold up to being worn on a wrist 15 to 18 hours a day, 365 days a year. That increases the odds of accidental damage happening some time during the two years of coverage that Apple Care + provides. So far I have knocked the watch into a couple of walls and other hard surfaces. I have also caught it on the edge of a few things as I was pulling my arm away. No damage yet, but whenever it happens I think to myself "got lucky that time."
I think if you wear the watch during rough manual labor or while engaging in sports or other activities with a potential for contact or submersion, definitely get Apple Care +. If you don't do these things then it's a matter of how risk-averse you are. When you factor in purchasing Apple Care + AND the replacement fee... that's $120 of insurance for a watch I paid $350 for. If my watch gets ruined from an accident, then I basically get a replacement at 1/3 the price. If I never need it, then I'm just out $50. I'm okay with that.
Sean
Sean,
I agree with you but I go a bit further in buying AC. Places like Verizon (and other carriers), Best Buy, Microcenter and others offer "replacement plans" through insurance outfits like Asurian and they not only come with hefty fees but mediocre to poor customer service.
I compare the difference between warranties to the difference between a local amusement park and Disney World. You get rides and food in both types of parks but you know at Disney you will be (almost always) treated like royalty.
For this sort of reasoning, I get AppleCare on every "portable" bit of Apple gear I buy and I never pay for insurance to Verizon, At&t, Microcenter, Best Buy, etc. I've bought AC on my MBP, my kids' MBPs, my kids' iPhones, my iPhone 6, (but not my iPad of which I've had 3 which have proven to be basically indestructible), and lastly my Apple Watch.
Let's look at an example how I've been treated. I was shelling out $7 per month per line for Asurian coverage to Verizon only to find out it only covered 2 replacements at $50 each on phones that were flip phones and basically free with contract. When my daughter's phone broke the third time, we were told we'd have to start a new 2 year hitch to get it replaced. Luckily none of us were under contract at the time. Bad move Verizon... This is when my wife finally swung over to my side and agreed that we drop Verizon like a cold turd and go to At&t so we could all have iPhones. (Yes this predated the ability to get iPhone on Verizon).
Now let's consider how I've been treated by Apple. My son spilled beer (or something) on his MBP keyboard and while it was still usable the keys were horribly sticky. We went to the Apple store to get it looked at and we weren't laughed out of the place. We got a $900 main board replacement for "customer relations" reasons under Applecare. And I've heard that this isn't an isolated incident and others have had "dubious" MBP repairs under AC as well though it isn't guaranteed they will cover accidental damage. When I had trouble with the "free" iPod touch I got when I bought that MBP, the guy in my local Apple store spent 15 minutes with a microscope trying to prove I'd dunked the thing in liquid. Happily this wasn't the end of the story as when I called AppleCare they replaced it for free. My kids' cracked screens on their iPhones have been replaced as well. Is it expensive? Yes. Is it worth it? To me yes it is. I value AppleCare mainly because I know that excellent customer service (almost always) comes with it. I haven't had one little bitty problem with my Apple Watch but AC on my MBP has allowed me to call AC whenever the mood strikes and with all the changes to my customary workflow going from Tiger to Leopard, etc to Yosemite you better believe I've taken advantage of it. In fact if you read the bug lists for OSX 10.5.x, for several of them I see verbatim quotes of issues I worked through with AC that they said they would pass along to Apple engineering. Now that I realize I use my MBP mainly as a desktop, I'll probably skip AC when I eventually replace it with a Retina MBP but AC is contagious so if you own one bit of Apple Gear, you can call them about it and talk through problems even if you discovered the issue on a different (but similar) product you own that has long since gone out of AC. I got a Time Capsule replaced because I was using it with a Macbook that was still under AC.
I realize this is only anecdotal evidence from my family, but I will continue to buy AC on new Apple gear for the foreseeable future if I can afford it and I also think there is a risk of it either breaking after warranty or falling down the stairs or over the rail at Niagara Falls.