Answer
This question was answered on April 30, 2005.
Much of the information contained herein may have changed since posting.
LCD Monitors are still expensive today especially if one breaks unexpectedly. Bypassing Circuit City’s warranty was probably a good move. They are generally more expensive than a manufacturer’s warranty and if you ever have to use your warranty, it will be less complicated when you are not dealing with a third party.
I don’t think $40 is too much to ask for a 3-year warranty from Proview. LCD monitors ARE more fragile than CRT’s and you should receive your monitor’s worth plus the warranty’s worth by the time 3 years is up. The monitor may even last longer than that (I found that LCD's can last between 50,000-60,000 hours).
Extending Proview’s warranty is a good idea incase an accident happens and will provide peace of mind.
Reference: Enhanced A+ guide to managing and maintaining your PC