It depends, not so much on the price, but whether or not I can support hardware failures myself. I always buy warranties on notebook computers (and renew them at the end of the warrenty period) because when something fails on the notebook, its usually something that I can't fix or even get at an affordable price. Over the years I've had lots of notebook keyboard failures (Acer will sell me one pretty cheaply, HP won't), mobo failures and LCD panel failures. All of these, except for maybe the keyboard, are failures that turn the notebook into a useless device. With a warrenty, it's someone else's problem.