AppleCare is generally a no-hassle warranty...it breaks, they fix or replace it. I've had 3rd party warranties on other products in the past and it seems like they live to say "No, it's not covered," when you actually need it, but perhaps the credit card and Square Space are the exceptions, I don't know. But I do know the few times I've had AppleCare it's paid for itself. (One motherboard and a hard disk on one iBook, which would've cost over a thousand dollars put me way ahead and more than paid for the repair and all the other AppleCares I've gotten.)
Like any insurance, you're paying for a certain amount of peace of mind.