Insurance is insurance. By its very nature there is no way to say its either worth it or not worth it. It will be different for every person.
Consider the factors that are part of the decision making process: cost, benefit, likelihood of use, and risk tolerance. Tire insurance for me would break down as...
Cost: $1500 or whatever it might be
Benefit: Repair or replace tire/rim damage for x years
Likelihood of use: Low. I drive very little and mostly on very well maintained roads.
Risk tolerance: I don't
need coverage. If I had to replace a flat tire or damaged rim it wouldn't be a significant hardship. I am willing to tolerate the risk of paying for a repair because I can afford it.
For me, there is little need and little chance of use so it doesn't make sense.
Consider critical illness insurance instead..
Cost: $18/month
Benefit: $200,000
Likelihood of use: Who knows! Will I get cancer? Will I get run over?
Risk tolerance: If I'm going to be out of work for several months then I need that $200,000 plain and simple. Otherwise I could be a burden to family and friends, or risk using retirement savings which then puts me in a pinch 30 years from now. I have no risk tolerance for potentially being off work and out of money.
So I buy critical illness coverage, and I don't buy tire and wheel coverage
