Our minds cope better with negative events than we imagine, so avoid the extended warranty. Everyone hates to lose out. Indeed in many circumstances we hate losses more than we love gains (it's called risk aversion).
The insurance industry knows this only too well so it frames products in terms of losses:
Worried you're going to be robbed?
Worried your holiday will be a disaster?
Worried you're going to die?
Well, worry no more! Insurance is the answer!