I have a 97 S90 with an extended warranty from National in Portland, OR. It is the "VIP" plan. So far I haven't had to use it yet. It did pay for a seat warmer switch. Check ebay motors for names of companies and their coverage.
In addition I have a 2000 V70 XC with the Volvo extended warranty. I've had the ETS replaced which is reputed to be a $900 job. If you haven't had yours replaced yet I would definitely consider an extended warranty. I am glad I bought mine when I purchased my vehicles (all purchased used).

Here's my experience with Volvo VIP warranty:

Since the manufacturer's warranty ran out on my '98 S70 the VIP has paid for the following:

* Broken damper motor in the HVAC system - this also required the replacement of the entire heater box that contains all the dampers and motors in it. Cost about $1,300

* Defective temperature sensor on the driver's side in the HVAC system. Not sure of the cost.
* Broken damper motor in the HVAC system - this also required the replacement of the entire heater box that contains all the dampers and motors in it. Cost about $1,300 (this is the same problem as before only two years later)
* defective ABS control module. Cost about $600
* Leaky seal on one of the drive shafts
* Right front door lock stopped locking

So, for things I do know the cost for the total is about $3200. Depending on what the extended warranty costs, you can make your own descision. I sure am glad I have VIP and am really worried about it running out next June. If this car was not paid off and running perfectly most of the time, I would have sold it a while ago. As it is I am not sure a new car bill is cheaper than an occasional largish repair bill.

Best regards.
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Vladimir. '98 S70 base, 5-speed manual - his, '93 945 - hers,