The fact that the BMW warranty is a profit making operation suggests that ion average its cheaper to pay the bills. What do you reckon?
I reckon:
1. Profit making. So is the company that provides your pension, your employer (unless you work(ed) for a charity, some weird mutual or the public sector of government) and, bizarrely enough, as is the company who manufactured your awesome steed. Don't let that quality of the western world's capitalist system cloud your judgement too much.
2. To buy or not to buy? If you can afford to go uninsured, do it. If you can't or don't want to, don't.
3. To help you to toss your coin:
Roughly 0.80p a day for indemnity against an insured event, repaired at an authorised BMW dealership with genuine parts, at a time and date (near enough) to your convenience, plus Europe recovery...... Plus a ton, for the excess.
By way of comparison:
A copy of the Sun is 0.60p
A pint of beer is about £3:80
20 cigarettes is a shade under £8
4. What else? The BMW branded extended warranty is reasonably broad in its cover, adding in the extra benefit of very good (compared with many) European recovery, too.
Insurance of this type, is not a gilt edged investment; if nothing goes wrong, then it returns absolutely zero. If something serious does happen, then it may well return in spades.
It's also a partial fallacy that you can pay three hundred (the equivalent of the annual premium) into a bank account each year and obtain the same result. OK, it works if nothing significant happens; but if your final drive fails on day two, you'll be stumping up more, say £600 for a big job. So, you'll have to bring forward the three hundred pounds you had earmarked for next year into this year and still have to pay £300 into your bank account next year, assuming you still own the motorcycle... Oh, and if you are truly wise, you'll need to add in three hundred again in the first year, in case you have a second calamity after the first.
Your implied proposition is that you only insure what you cannot afford to pay for in full out of liquid cash.
If so, let's take an example of £600 in cash available and if you are reasonably sure nothing else will go wrong and/ or that you will not suddenly have to spend the £600 on a new front door or replacing the ignition system on your car... Or if it do, that you can cover two £600 eventualities... Then indeed going self-insured makes excellent sense.
If you are less certain that you can make a £600 cash call to repair your motorcycle and still have funds to go on your holiday on your motorcycle, then extended warranty may well just become your very best friend.
6. To summarise. You pays yer money, you takes yer choice. There is no absolute right or wrong definitive answer. Only time and your wallet will tell you whether what you (not another fellow) decided to do was right.
For what it's worth, I had excellent value out of mine, more than once. Recovery in France, a new final drive, a new radiator... And probably a bit more. I do lots of miles in a year, almost exclusively outside of the UK. The pence cost per mile for me is manageable, I'll spend near enough on fuel just on one or two decent jaunts than I will in a year of extended warranty cover.
5. Further reading... As with most questions about 'value', 'insurance', 'should I, shouldn't I' there are several (lots) of threads on the topic. None reach a definitive answer.
And the current bike seems like a good one. But I have been a bit un nerved by having bevel box problems on my previous 2008 bike and whats more finding bevel box problems on an RT in a dealers with 2k miles on the clock and from 2011. 
