Fry's XBox Insurance - Ripoff?

This is a draft that I forgot about until now (March) which makes it even more interesting in a way:

A delayed January christmas purchase for the long-haired boy-child is an XBox 360. I thought I had the Beautiful Wife better trained, but probably she just needed my support to shut the sales weasel up. She called me asking whether she should pay the $50 for the 'Insurance' on the rig. I was saying "No, No, No" before she got finished the "Inss" and kept saying it as she tried to tell me that the sales weasel was saying that it is not a warranty and covers everything ... yada yada yada ... 1 in 6 of these have some problem ... yada yada.

Seriously. More than 10% of the cost of the system for this rip off coverage. Enough people clearly still fall for this because they are still offering it and pushing it hard enough that my Beautiful Wife has to call me for backup to decline it. Scum.

We have or had until recently passed on to nephews, let me think a bit: DS, DS, Sega NES GameCube, PlayStation, all working and the oldest of which is, well, OLD. We would have more if certain kiddos had not misplaced certain shiny bits.

The Answer found on WikiAnswers:

Q: How do you get xbox 360 insurance if you buy the xbox 360 on the internet?

A: you don't need the insurance it comes with a 3 year warranty.