Whan,
That price isn't out of line, the numbers on the warranty sound a bit strange. I assume you are you extending it past the 4yr/50K OEM warranty by 3yr/36K. (so a 7yr/90K total) What kind of deductable does the $2500 get you? As with insurance, deductable can determine overall price to a great degree. If the $2500 is too steep an entry fee for you there is always setting a deductable for only 4-figure items. Normal deductables seem to run in the $200-$250 range.

Hope this helps...Lee