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i had that insurance on my 08 IS350....it covered the wheels and rims...so, if you hit a pothole, for example, and break the rim, it would be covered....those rims are super expensive, so I figured the insurance was worth it...it was $500 when I leased that car.....not sure what it goes for today, but I think you can negotiate that price.
I am a careful driver but I have bent 3-4 rims on my older GS with the 18 inch rims so I will get the insurance for $599 on the new GS F-Sport for 3 years. Thats a great deal compared to BMW which is around 1500 for 3-4 years!!!!