The problem with these Square Trade Accidental Damage Warranties are that you have to pay a $50 "deductible" when you put in a claim to SquareTrade for accidental damage. So, you're paying $40 for this "warranty" and then have to pay in another $50 to use it. That's a cost of $90 for them to fix your old, outdated, broken camera. For another $60 (90 + 60 = 150) you can get the most updated camera and chuck your old one!
I don't know why anyone would want this kind of plan with a "deductible" (it should be called an "extortion fee".
AND if Sony is offering one without a $50 "deductible" then go for the Sony warranty!
*** UPDATE June 13, 2010: As L. Samuel says below, since June 2010 SquareTrade says that the deductible is being waived for all ADH claims that are not cellphones. BUT is this a temporary waiver just to get more business in the next few months? Or is this part of the Terms & Conditions of the plan?
IF SquareTrade is ONLY OFFERING A "WAIVER" of the $50 deductible which they can stop offering at any time, it's just not worth it. In that case you are better off with another ADH plan (from Sony or Best Buy) that doesn't have a built-in deductible which cost as much (or more!) than the warranty itself! (Why? Because your luck, when YOUR item breaks and you contact SquareTrade, that "waiver" will no longer be offered and you'll be stuck with having to pay a $50 deductible because it was in the Terms & Conditions!)
BUT IF the $50 deductible for all items other than cellphones is COMPLETELY REMOVED from the Terms & Conditions of the plan, then the SquareTrade Warranty is the way to go.
BE CAREFUL FOLKS! And make sure you know what you're getting!