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That's in contrast to the current situation where consumers must take the tire to a dealer who sells that brand. If the tire is damaged during a trip to the United States, for instance, it must be brought back to Canada for a claim.

Sonsio CEO Michael Jones said his company aims to minimize frustration and inconvenience in settling claims for motorists who have a flat tire. Sonsio can send out a service vehicle to change the tire.

Selling road hazard insurance would give tire dealers another income source.

In a letter to tire dealers, Tom Bennett, Michelin's vice-president of sales and marketing, said: "Michelin North America (Canada) Inc. believes that the elimination of the manufacturer's road hazard protection plan will provide you with the opportunity to potentially increase your profitability by designing and selling your own road hazard protection plan."

Jones said Sonsio sells the coverage to tire dealers on a wholesale basis. The dealers set their price when they sell it to consumers.

For more information on Treadlife and Sonsio policies, check out their websites at www.treadlife.com and www.sonsio.com.