At $1998, it is a ripoff. Typical coverage should be around $900-$1000 depending on term. Be careful with the hazard insurance offered from tire stores. Read the fine print as it only covers typically 1 replacement per corner. So, if you have two issues on the front right, you are only covered for 1 of the 2 occurrences. I've had 6 BMW's in 6 years and for the first 3 I didn't purchase coverage. After $3,000 in issues, tires mostly and 2 wheels, the coverage is a no-brainer. If you have 1 occurrence with a pothole, you've basically paid for the coverage assuming the tire isn't damaged. If it is, you already have a 25-50% return on your money.