In my experience yes. I had an 07 plate passat – in the 18 months i had it with extended warranty it covered new lambda sensor, new seals or pipes on the turbo (or something like that anyway) and the biggie which was new electronic handbrake control units when the handbrake stuck on when we were on holiday in the Alps (€1200 bill for that one).
it also includes top level RAC cover Europe wide which is worth quite a bit on its own, and covered a hire car for two weeks while my car had a holiday within a holiday.
Everything dealt with no hassle -UK stuff you don’t pay for, the French bill was refunded in a week or two.
I don’t have the car any more though. Quelle surprise!