HEWLETT PACKARD HP CUSTOM BUILT LAPTOP DVD STOPS WORKING AFTER 3 MONTHS. Nationwide

When you buy a warranty for an electronic device, ensure what they actually warrant for everything (hardware & labor). In your case, their warranty seems to cover only the labor part but none on the hardware part (which is what they usually try to sell). Normally hardware warranty comes with its manufacturer, but it may not have if you did not buy it directly from the manufacturer unless it is a part of a bundle. The DVD drive nowadays is notoriously fragile and has very short life (mostly around 1~2 years). It is usually not covered by the manufacturer if it comes with a laptop/computer because it is considered as bundle for the middle guy (in your case is HP). The only way to deal with this issue is to send the whole thing back to HP and get them to send a new (refurbished) one back to you...

PS: I recommend NOT to buy any seller warranty. It does not make sense and pretty much a free money to the seller company.