I've used Warranty Direct for a number of years on a number of different cars. I've made numerous claims, including some big ones, all no problem apart from 1 where I had an EGR valve and oil cooler leaking water - the VW garage said they'd need to drain the oil and replace oil and filter once the EGR valve and oil cooler had been replaced. WD initially said they wouldn't cover the "oil change" as they put it as that was maintenance. I argued (via email to the WD MD, Duncan McClure Fisher) that it wouldn't need an oil and filter change had the insured part not failed and they then agreed. Even apologised and said they'd update their internal procedures accordingly.
The main thing with any warranty is to know what you're taking out in terms of level of cover - they do different levels. Take out the highest level you can. I always try and get the cover where they list the excluded items and anything else is automatically covered rather than the other way round.
Warranty Direct also cover wear and tear and not once have they questioned wear and tear.
I don't work for them, just my experience over the years. Most of the issues I see that people have with warranty companies is where they THINK they are covered when they are clearly not - read the policy documents! They're quite simple and clear.
Having said that, the price of the Alfa one seems good, depending on the level of cover and if they exclude wear and tear.