I normally never get insurance (warranty extensions) for products. However, last winter I dumped a boatload on a DP 1 Gig and Cinema Display. I figured by that time, I had spent so much I might as well get the Applecare. Sure enough, one of my video card's capacitors came loose after being scrunched up against a dangling power cable (internal) and fried the machine. Applecare is taking care of it all, no trouble so far.
However, MAKE SURE YOUR APPLECARE ENROLLMENT GETS PROCESSED!! My enrollment was supposed to have been done automatically at the store, but was not for some reason. I spent two weeks on the phone with Applecare admin to get it resolved. Major pain.