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Like you, OP, I benefited hugely from a car extended warranty. Audi hatchback, 4 year factory warranty was extended to 8 years for like $2k? Didn't seem like a lot to spend for the added insurance in case something catastrophic happened. And something catastrophic did happen! In year 5, a factory sparkplug came apart and bits of it got sucked through the cylinder, gouged the cylinder walls, got sucked through the turbo, shattered all the turbo fins.
Without the warranty the car would have been a write-off. The entire engine plus turbo were replaced under warranty. They don't make that particular engine anymore so the replacement was used but had lower mileage. A lot of parts connected the engine are considered single-use by Audi as well. Engine mount pads, bolts, nuts, hoses, clamps, etc., their policy is to replace those parts when the engine is replaced. The list of parts replaced was four pages long.
All told, between all the parts and labour I'd estimate it was at least a $20k repair. Utterly worth the $2k I paid on the extended warranty. Oh, and I had a loaner for about six months while they were sourcing the replacement engine, so six months of putting wear on someone else's vehicle. Probably the best $2k I've ever spent.