if you are at 100% of the value of the car it can be a nice bit of piece of mind. If you've got equity in the car you may not benefit even if the car is totaled. The $1000 toward a replacement is nice if you ever need it though. $330 seems steeper than I recall from when I was still doing loans though.

Never get it through the dealership though, if you do it only get it at a CU.