Unless you can invest those funds in something that will offer gains that outstrip the benefit of not having to worry about it in 11 months and beat inflation, there is no reason to not purchase Applecare either at time of purchase, 2, 4 , 11 months or the day before your original 1 year warranty expires. You can recieve a prorated refund for your Applecare based on a daily rate of which I don't know (purchase price / 730?), so if you spill water all over your machine at 1 year and two months and Apple refuses to service your machine, they are no longer going to render services to you and thus must refund the remaining portion of your contract (if you call them out on it). Oh, and anyone can have their agreement terminated and given a refund , not just for destroyed machines.