Wow $3400 for 4 years, thats the highest I have heard so far. Your dealer is probably making a 400% profit from that price. If you are ordering the M-Sport, I believe it comes with 19" low profile tires, which are more prone to damage. To make matters worst, if you are one of the few unlucky one that get the crappy Good Year Eagle LS2 for OEM tires, they have a high rate of failure and tends to develop bubbles on the sidewall when you hit a large pot hole. What city do you live in? Is there a lot of potholes in your area? Those should all factor into rather you buy the tire insurance or not, but I would shop around if you do decide to buy.
A few months ago, when we bought our X3, we were offer a $1200 tire insurance policy for 5 years and we turn it down. My wife got a non-repairable flat in one of the tire, nail near the sidewall. The tire was replace at a major tire chain store for $400 and they offer us the tire insurance for all 4 tires for $40 per tire. Quite a bit cheaper but its a pro-rated insurance pay out according to tire tread depth. At $3400, you will have to get 9 or more non-repairable flats in 4 years to come out ahead
