I have a life rule. Never buy insurance (Warranties / Apple Care, etc.) unless you are forced to. That's just me.
I live in a country with good consumer protection, so I would never ever pay for warranty alone: If a machine has held up for a year of regular use, it will probably keep working for the rest of its useful life.
As for damage, I don't know how it works in other regions, but here, physical damage to computers and peripherals is covered to a good degree by regular home insurance: Show some proof of ownership and you'll get back a percentage based on the age of the product (100% during the first year, decreasing in steps of 20% per year, if I recall correctly), unless there's cause to believe you're trying to game the system.
For iDevices, however, I currently do pay for AppleCare: Regular insurance policies don't cover handheld devices consisting mostly of a screen, and with a five-year-old at home I know things will break more than I've traditionally been used to over the next few years, so that's not even a gamble on my part.