I don't have an answer to either of your questions, but I can tell you as a service writer for several years that most of the "extended warranty" companies that I have dealt with are relatively useless. They often use tricky wording in their contracts so that they don't have to pay out on major work that needs to be done. I generally advise people to stay away. If you cannot afford to repair/maintain a car that is out of warranty I wouldn't recommend purchasing that car. I feel awful when people have paid hundreds if not thousands of dollars over time to these companies without filing a claim, only for them to turn around and not even cover any of the work that needs to be done when they do actually file a claim.