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I used twice Warranty Direct. On my E46 330i I about broke even, on my E92 335 I definitely took advantage of the warranty. In both cases I chose full coverage but with high deductible, to keep the cost low.
They often try not to approve stuff even with the best coverage, but with a more persistent service advisor they eventually covered virtually everything. Once my car was at the dealer for quite some time (two weeks or more I think) when they were figuring things up. I didn't mind since meanwhile I was driving a loaner. If I went to an independent mechanic, I would be screwed, though, so once you have coverage make sure you go to the dealer and get a loaner.
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