A couple hundred dollars a month for four or five years??? That will get you a decent used car, or even a lease on a brand new small car. I wouldn’t even expect to pay a tenth of that for an extended warranty, but I also would never buy an extended warranty. They are usually not even worth the paper they are written on, and certainly would not cover your transmission problems, especially if they found out it had problems before you bought the warranty.
Save your extended warranty money and put it in a savings account where it will build interest while you are not using it. Spend money on scheduled maintenance to prevent breakdowns and incidental damage due to neglect. And above all, remember that few people benefit from an extended warranty. I know someone who bought a very expensive (over $3k) extended warranty on a Kia Sedona minivan (see? there’s already a problem there) that supposedly covered pretty much everything. The sunroof developed a leak and ruined the trip computer, headliner, and damaged the interior in some other places. After much prodding, the warranty fixed the sunroof, but told the owner that they would not cover anything else because water damage is not covered by the warranty! I drove the van once and noticed the steering wheel was off center. Further inspection revealed a loose inner tie rod end. Warranty says it covers suspension parts, so the owner takes it to the dealer that sold her the warranty. They agreed that the tie rod end was loose, but the warranty people said they would only cover it if the part broke completely. This makes no sense to me since tie rod ends are one of those things that can kill everybody inside the vehicle if it breaks. I guess they were hoping for that so they wouldn’t have to deal with her and her desire to get something for her three grand. The main purpose of an extended warranty is to line the pockets of the people who sell them.