I have what I call an Extended Warranty fund. You could call yours a Protection fund, or whatever. Every time I'm offered an extended warranty, I ask how much it costs and how long it is effective - and then I decline. Later, I pay that amount into my Extended Warranty fund, and make a note that my new toy is covered for that period of time. Over time, the fund has really grown in value - and I've never had to use it.
So I get the coverage being offered, but I also get to keep the premium, and I even earn a little interest to boot.