Credit card warranty
My Visa (and probably yours too) doubles the mfr warranty for up to one year additional, without the added cost of the extended warranty.
I've had the opportunity to use this VISA warranty, so I guess I'll add to the discussion.
Two months after my iPhone4 warranty expired, the power button got really mushy and stopped working. I took it to the Apple store and they "repaired" it for $199+tax. (Really they exchanged it for a like-new refurb.) I submitted a claim to VISA. They asked for paperwork: a copy of the repair invoice, a copy of the receipt, and a copy of my credit card statement showing the purchase. I obtained these and mailed them to VISA (FAX was also an option). About two weeks later I had a check in hand that covered 100% of the repair cost.
So for me, and anyone else with a credit card extended warranty, paying for Apple Care really only gets you year #3 of coverage. Year #1 is covered by Apple and #2 covered by the credit card.
I did purchase Apple Care for my MP, but it was heavily discounted and my Mac Pro is a refurbished model. Refurbs are not covered by the credit card warranty.