How old is your child? Both my kids had DS lites by age 8, and they never broke due to dropping. They did get dropped in the floor board of the car I guess, but not around the house. For a DS Lite, the repair cost (pretty much ANY repair) is around $80, if they haven't changed it. And hinge related issues (not due to obvious dropping, but maybe pushing the hinge too far back a few too many times?) would have been covered without the "accidental damage" coverage. It was all we ever had issues with, but it was after the one year was up. With any repair they automatically give you a "new" one year warranty from the date of the repair forward.
ETA: And I am not a warranty purchaser either. I NEVER buy a warranty. I pay with a credit card, to automatically extend it via the credit card... but that's about it. Not even on appliances. I have never had one break WITHIN even the extended warranty periods anyway.
ETA Again: If the lap thing and getting out of the car is your big worry with those, then definitely I vote NO. Ditto Purple Mom: I ALWAYS give my kids warnings that they need to "put up" their things when we are getting ready to exit the car. :) When I pull into Target, I want to get out of the car, not sit there for 5 minutes waiting on them to deal with their "schtuff". :))