Nikon Camera Warranty?

I'm going to go today or tomorrow to buy a Nikon D3100, specifically this bundle: http://www.futureshop.ca/en-CA/product/nikon-nikon-d3100-14-0mp-dslr-camera-with-af-s-dx-nikkor-18-55mm-vr-lens-kit-d3100/10153746.aspx?lang=en-CA&pcname=&sku=10153746&path=4bcc7472263e75dbe1d87b4ecaf8c69een02

I have $530, and after taxes the camera comes to around $450, so how will the warranty work. I have never used warranty in my life but usually get it, so I'm wondering, is it even necessary? Can I choose a 2 year warranty rather than the 4 year, 80 dollar warranty I saw on their website?

I wouldn't suggest buying any extra warranty coverage. Nikon will give you a full years coverage. The lens maybe 3 years.
The warranty covers defects in manufacture, good for one year. They'll fix anything for free within that time period.

Extended warranties are rarely useful. If there's a defect it most often shows within the first year. Often it can show within the first few days, so pay attention to the terms of the store return policy.
Nikon offers an extension of the warranty on their lenses to 5 years. A catch is that you would need to fill in and mail the form within ten days of purchase. If you do that it would bring an early end to the store's returnability policy.

Nikon throw in an automatic one-year warranty when you buy their camera, and it's all you need.

If they insist on the $80 warranty (a complete con), find a dealer who doesn't.

Do not buy warranty. The one that comes free for one year is enough. Buy from a store near you. Warranty will only apply if you return the camera to the store you bought it from. For service, even after the warranty period has ended, only the service center of the store you bought the camera from will entertain you. Nikon has strict distributorship area coverage.