That should raise a giant red flag. Unless you're extremely careless and don't look after things, you're paying for other peoples carelessness.
But, I don't think of it in terms of how much money I "save" by breaking stuff.
I pay the extra cost and try to be careful. What I get back is Less Worry. If the thingy breaks down, I get a new thingy. That's worth money to me.
The alternative is to handle the risk myself, and saving the 10%s into a "surprise expense account" to use when things break down. I'm convinced I don't have the discipline for that - both managing it and not using the money for other expenses.
It's a matter of cost vs hassle as you say though I guess. For me, if I have 10 electronic gadgets and one blows up, it's not really a big deal, because I can buy a new one with the money I saved by not having extended warranties on all 10 items.