If you plan to wear & tear excessively on your new Volvo, you should buy the policy.
I treat my cars very well. I park away from other cars, don’t mind walking a few extra steps.
The excess wear/tear policy is going to end up being pure profit for your selling dealer.
I wouldn’t think it would be worth the time to do that, and even if you had the time, I’m doubtful that jumping through all of those hoops would even save you any money. In OP’s case, the plan was over $1,000 right off the bat. Then I have to go through the trouble of finding used tires, then I have to pay to mount the used tires to the wheels and keep the bald tires. Then I have to go back to the tire shop and pay to have them mount bald tires to the wheels right before I turn the lease in. I’m sure some shops wouldn’t even mount tires that were super low on treads. Then after I do that, I have to sell the used tires for presumably less than I paid for them.
It seems like a lot of hassle when I can just buy new tires and have them mounted for $800 and I’m sure less for used ones. 
true, valid points.
I leased an Volvo XC90 T6 Inscription today and was offered the same wear and tear insurance for the same $1049. The F&I guy tried to tell me Volvo charges for rock chips and gave me the same $2.5-5k charges at lease end BS. I declined the coverage. When he asked why I told him the information I found googling lease wear and tear insurance; basically that it’s a pure profit move by the dealer. He got butt hurt and told me they don’t make a penny on the insurance as it is sold by Volvo. I didn’t buy it. I’ve had 3 previous lease returns, a Mustang GT, a Grand Cherokee Summit and an Explorer Platinum and have never been charged a penny upon return.
Martin