With a specialty car like the Insight I'd probably lean towards the Honda warranty. I went to the dealership and asked some questions, they sell a different warranty and it didn't cover a lot of stuff. The main thing that scared me away was the fact that the battery pack wasn't covered under it. As soon as they told me that I got scared away. The honda warranty specifically states batteries are not covered except for Insight Nickel Metal Hydrive battery so it is covered for up to an additional 20,000 miles. Plus (and I have this in writing from them too) the Honda warranty is exculsionary. As in if it isn't listed on the not covered list then it is covered. At least thats what they told me, I would think the email would hold up in court if it came to it.
Check my other post, there's a link for a dealership out of Mass that's selling em pretty cheaply. I just bought a 6 year 100,000 mile warranty for mine a few days ago. I'm expecting the paper work in the next day or two. It was a good price, $830. Also, consider the price goes up after 24,000 miles and goes up again if you pass 36,000 miles. I just passed 24,000 so I decided I'd get it early and be done with it. The cool thing is they give you 60 days in which you can decide to get a full refund if you don't like the terms.
But the batteries are already covered for 8 years or 80k miles. I'm more worried about the rest of the car. I've had my car for 2 years and only put 11k miles on it, so I'm more worried about the length of the warranty.
Do you have a link for an online warranty dealer? I'm also pretty sure nothing they told you would hold up in court, if it isn't in writing in the warranty paperwork.
I just got the sample contract today, I'm supposed to recieve the real one within 30 days. If it has most of the covered stuff as the sample one has I'll be more than happy.
As far as the battery warranty, there have already been enough batteries needed between 80K and 100K miles to make me want coverage on them. Also the Honda warranty I believe will cover everything else in the magic box too for an additional 20K miles if you get one that runs for that long. If you start looking you'll find that many of those parts cost a lot of money.
For that link, click back then go down maybe 4 posts and click on it.