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Like all insurance, it's a waste of money until it isn't. I bought the insurance on my first M3 for $1000, and within the first week had a broken piece of chain stuck in the tread, too close to the sidewall to repair. That was new tire #1. A few months later I hit a huge, unavoidable pothole that took out one tire and bent two rims, one irrepairable. Replacement tire #2, and replacement rim #1. I had two more repairable flats (a screw and then a nail) after that. So all in all, it was totally worth it for me. FWIW: I live in Boston so that raises my odds of this stuff happening.
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