I pick up my 1M next Friday. I purchased the five year tire/rim warranty. My understanding is that the dealers cost is just under $1000. I paid $2000 for two reasons. One is history with my E36. I hit a pothole in Ny and it cost me an arm and a leg to repair just one wheel/rim. Two is that although I paid list for my 1M, it was understood that if I didn't go with this package, the deal wouldn't have gone through. In the end, I believe that I made the right choice. I am covered and I have a 1M!
I hope that helps.