I think the first one is really not worth it, personally.
The second one is the one I've seen some people buy. I took it myself, but only after they lowered the price to 850 or something.... but that's for the 335i. I would check the price of replacement tires for the M3 and multiply it by the number of times I think I will get a flat.
I will probably not bother this time. I've actually never had a flat in all my years of driving (just watch, I'll decline it and then bam!, I'll get 3 flats in a row!)
They offer these warranties with such enthusiasm because the insurance company makes money off of them and they make money off of them... Statistically, chances are it won't be worth your money.
Present: 2013 M3 coupe (Azurite Black, Black, Piano Black)
Past: 2010 335i coupe (Monaco Blue, Cream Beige, Grey Poplar)
+ miata nut (2004 GT/LS and 2013 GS/Club Edition)