It is an extension of your original warranty, flat tire - no, tow - depending if it's caused by a manufacturers defect, gas drop off - definitely no (there is no stupidity clause). I buy the extended warranty for one reason and one reason only - this bike is bullet-proof BUT if there is an electronic problem i.e. ECU, short circuit, blowing fuses et.al, one repair will pay for itself. As I get older, I'm 55, $125 a year for piece of mind is a cheap price to pay because I AIN'T getting rid of this bike as it the most satisfying machine I ever had and it will take me directly into the nursing home. As far as the other stuff - flat tire (get a tire plug kit), tow when down (get the AAA add on), gas refill (make your half your empty).