I arranged a two year policy before my Leon was 3 years old. Its around £21 a month for 24 months. Its called Prestige Cover Mechanical Breakdown Insurance.
I searched through loads and this seemed the best bet. The claims limit is £3k, no limit to amount of claims but only up to the value of the car. £50 excess on each and every claim.
The garage deals directly with the administrators - its branded RAC, but actually ran by Motorway Direct. You just pay the garage the excess - they do everything else. I originally found this as it was recommended by a SEAT dealer who used to be MG Rover dealers as well.
You can transfer the warranty to another person as well (if all parties agree). There is a maximum labour rate that they will pay per hr - which is ~£36-£42 approx.
You need to keep full service history etc, and remember that this isnt a Manufacturers warranty.
I would get a quote from them -
http://www.rac.co.uk/business/warranties/ - I called them as the website doesnt quote.
Matt