I haven't used it yet (only been a few weeks), but the rather high price I paid for a Volvo VIP 3/36 extended warranty is worth it for the peace of mind and no-hassle service I can expect for the next three years.
I can think of at least two items on the 98 70 series that have a fairly high likelihood of needing service in the warranty period: the driver's seat power mechanism has a tendency to become slightly loose and sloppy over time causing a fore-aft "clunk", and the AC evaporator and/or compressor may be suspect, depending on what redesigns, if any, were done on the system used on the mid-90's 850. Also, this is a small thing, but I shouldn't have to pay for any marker or indicator lights or sockets.
There are many relatively small items that have high parts costs with European cars (center cupholder assembly, for example: $60+). Also, labor on a heating/AC problem tends to be high because it often requires pulling the dash. 8 hours @ $75/hr. adds up. I think of it as an insurance policy and a convenience. I won't have to agonize over whether to pay for or put off any annoying little problems (not to mention debilitating ones). And VIP has a pretty good reputation for not quibbling; I think they also allow you to do your own scheduled maintenance.
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