You really have to read the fine print. Had a Ford Ranger that I bought a warranty for. Same conditions of repayment if not used. Imagine my surprise when a factory warranty repair counted as a repair under the extended warranty - so no money back. Also how many $100 repairs do you want to eat to get you $950 back?
You are using 2005 consumer reports as your argument? How about something a little more current? Toyota's perceived reliability is no where near what it once was. And also with $85 labor rates there is no such thing as a $100 repair.
So far I am in your corner on car extended warranties. They are so full of loop holes and exclusions to be sure that the plan issuer makes money. It takes an attorney and a certified mechanic to decipher just how worthwhile an extended warranty is.
IIRC, recent reliability ratings on the Prius were still to the 2005 levels. You have a point about labor rates, and parts are expensive. But I just came off of about 8 years with a Subaru Baja with 65k miles. Never had a warranty issue. Just brakes done, a new battery, and new tires. Give me a Toyota back extended warranty with the only honest wear and tear exclusions for 7 years or 100k for $750 that is transferable for let's say $75-100; then I might buy in....
