I saw skip the warranty---and take your chances. If you buy the warranty and never have a problem, you're going to kick yourself for forking out the extra money. If you DO have a problem, you will just have to pay for it yourself.
What if you took whatever amount you'd pay monthly for the coverage into a savings account and later, if you don't need it for repairs, you could pay yourself back with a bonus??
Toyotas are great cars! You shouldn't have a major problem. Just make sure a good mechanic checks the car before you buy it. If he ok's it, go for it---and try not to worry about what COULD happen.