That is how big guys do. That is what big corporations do. Insurance is for protection against losses you can not afford. So if you really need the insurance, choose the largest deductible you can afford. Again the saving in the premium invested will be more than the deductible amount.
Insurance is protection for losses for unexpected events.
So if you do not expect it to occur why buy protection. If not do not buy the extended warranty. If the dryer can fail in three years, why to buy the dryer. Buy the dryer that you trust and will last more than 3 years. Insurance is the protection against the losses you can not afford.