Will warranty bring peace of mind?

Dear Terry,
I know that almost everyone says I shouldn't buy an extended warranty, but I'm spending more money to buy my new 2007 Buick Lucerne than I've ever spent on anything and I just want the added peace of mind. But my question is this: The dealership wants to sell me a warranty backed by a company I've never heard of, but he says is reliable. Should I be concerned?
-- Jenny

Dear Jenny,
It's too bad you won't listen to reason on extended warranties. Consumer Reports -- and just about every other pro-consumer outlet -- says they are a waste of money because you likely will never have to use it and if you do need the warranty you're likely to find it doesn't cover the repair you need.

But if you must have one, don't buy it from the dealership -- they're getting a huge commission -- and certainly don't buy it from a company you've never heard of. Edmunds.com, AAA.com and other sites can provide links to companies that offer extended warranties for less than you'll pay at a dealership. A warranty is only as good as the company that stands behind it. A.M. Best Company rates the insurance companies that offer extended warranties. But even with that information, it can still be a crapshoot. National Warranty was an A.M. Best-rated company right up until it declared insolvency and quit paying claims in 2003.

Lastly, read the warranty very, very carefully before you buy it. Make sure of what it covers, where you can get the repairs done, whether there are any deductibles or exceptions for what the company may call excessive wear. Don't accept any verbal assurances that the warranty "covers everything."