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Driving
Some tire manufacturers plan to drop road-hazard coverage
 
Dave Halliday
The Edmonton Journal

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EDMONTON - Consumers will soon face a major change in tire-warranty coverage.

At least two major tire manufacturers are dropping road-hazard protection from their passenger car and light truck tires, effective Jan. 1. Under road-hazard protection, a tire can be replaced after being severely damaged while the vehicle is being driven. It does not apply to vandalism.

Road hazard protection covers a variety of damage to tires, including cuts, punctures and impact damage.

Bridgestone/Firestone Canada Inc. and Michelin North America (Canada) Inc. both say they are ending road hazard coverage. Michelin also sells BF Goodrich and Uniroyal tires.

However, Mike Consentino, consumer products manager for Goodyear, said the company has not made a decision one way or the other on road-hazard coverage.

Michelin says that tires sold on or before Dec. 31 will still have the manufacturer's road-hazard coverage. A sales receipt will be needed to make a claim under this warranty.

Since the warranty will no longer be provided by the manufacturer, consumers who want that coverage will have to purchase it from the tire dealer when they buy the tires.

Michael Sigillito, director of consumer tire marketing for Bridgestone/Firestone, said the manufacturer is working with a couple of firms to provide road-hazard insurance. The companies providing the insurance are Treadlife, based in London, Ont., and Sonsio with headquarters in Golden, Colo.

Taking this approach will mean tires will be similar to other items such as electronic products where enhanced warranties are purchased separately, Sigillito said.

Mark Wilson of Treadlife said the coverage his company provides will be more comprehensive than the road-hazard coverage currently provided by tire manufacturers. Treadlife, a Canadian owned company, sells policies that range from road-hazard coverage to road-hazard with roadside assistance.

Treadlife policy costs could range from $69 for a set of four replacement tires for a minivan to $99 for a set of four high-performance tires, Wilson said. Roadside assistance would add another $35 to $40 per policy. A typical policy would provide coverage for five years or 100,000 kilometres.

In contrast to road-hazard coverage provided by the manufacturer, Treadlife's policy provides for free replacement in the first year of a tire's life, free installation, free balancing and free rim repair or replacement.

The manufacturer's warranty coverage is pro-rated based on the amount of tread left on the tire. The motorist pays a reduced amount for the replacement tire, then pays an administration fee, plus the cost of installing and balancing the tire and tax.

Wilson gave an example of a $144 tire that is worn to half the orginal tread depth and replaced under the manufacturer's road-hazard coverage. The motorist would pay $72 for the replacement tire, a $12 administration fee, $15 for installation and balancing and nearly $7 in GST, bringing the total to more than $100.

Besides paying for road-hazard protection, the other change tire buyers would see is an easier claims process. Any tire dealer, including department stores, would be able to handle claims under the warranty.

More...

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