Don't go with the insurance. What people don't realize is that everything under a certain dollar amount is already insured.
This is not completely accurate. eBay automatically insures the value of the puchase between $25USD and $200USD. Nothing more and nothing less. To illustrate some possible claims:
$25 purchase = $0 refunded from eBay
$50 purchase = $25 refunded from eBay
$200 purchase = $175 refunded from eBay
$1,000 purchase = $175 refunded from eBay
You need to account for the fact that you will not receive the first $25 or any amount over $200 back from eBay when considering the purchase of additional insurance.
Some item paid for through PayPal receive additional protection (up to $1,000USD or $1,250CDN). The seller has to meet certain criteria for this to apply.