Tire Protection Plan

How it works:

  • The Tire Protection Plan (TPP) is dealer funded – Dealers set their own price for the TPP, keep funds generated from the sale of the TPP and are responsible for any claims against the TPP. Dealers pay a small monthly administration fee to ATD that is based on their ServiceBAY level.
  • The Tire Protection Plan can be sold on any tire a dealer sells to a retail customer at their place of business, including tires not purchased through ATD. The TPP cannot be sold to wholesale, third party or internet sales.
  • When a customer is within a 25 mile radius of the original servicing location, they must return their vehicle and damaged tire(s) to that location for warranty service. Warranty services performed for customers within the 25 mile radius are done at the dealer's expense.
  • When a customer is more than 25 miles from the original servicing location, they can call the Protection Plus toll-free number and are referred to participating locations for warranty service. ABS will always refer traveling consumers to Protection Plus locations first, whenever possible. If there are no participating locations in the customer's area, the customer may take their vehicle to a non-participating repair facility.
  • Warranty services performed outside the 25 mile radius are not billed back to the original dealer.
  • For more information about the Tire Protection Plan, call your local ATD distribution center or fill out the information request form and an ATD representative will contact you.
  • Learn how to sell the Tire Protection Plan on 75% of your tire sales
  • Selling the Tire Protection Plan

Tire Protection Plan (TPP) Profit Calculator

How are you going to handle this couple when they come back with their "blown out" tire?

The Tire Protection Plan allows you to satisfy customers like this and gives you additional income. Simply answer the questions below to determine how much additional income you can earn or you may want to answer the questions to see how little you can sell a Tire Protection Plan for to cover the costs of satisfying your customer's road hazards.

Tire Protection Plan(TPP) Income

How many retail Passenger & LT tires do you sell per month?
What is your average retail price per tire?
What percentage of retail tire sales will you sell TPP on?
How much can you sell the TPP for?
Enter percent of retail price ->
Gross Profit

Tire Protection Plan(TPP) Expense

What is your average cost per tire?
% of TPP units that will be replaced
= Number of tires replaced per month
Cost of replacement tires (Assumes 100% replacement on all tires)
Net Profit per Month

What's Covered:

  • The Tire Protection Plan Road Hazard is valid for 4 years from the date of purchase or the tire(s) is worn to 2/32nds, whichever comes first.
  • The administrator (Automotive Business Solutions - ABS) administers the claim when the customer is more than 25 miles from the original selling dealer (within 25 miles the customer returns to the selling dealer.) ABS can be reached at 800-351-8565 from 8:00 a.m. to 8:00 p.m. EST, Monday through Friday and Saturday from 9:00 a.m. to 6:00 p.m. excluding holidays.
  • Tire Replacement: If the tire failure occurs within the first 25% of useable treadwear the tire will be replaced with coverage up to 100% of the original price paid for the tire. If the tire is more than 25% worn it will be pro-rated based on the original selling price (see Exclusions and Limitations in Pamphlet).
  • Tire Repair: If the tire is damaged and can be safely repaired, the tire will be repaired per manufacturer's guidelines at any participating facility. The repair will be provided free of charge if performed by the original facility that sold this plan or by another ServiceBAY dealer. If the repair is performed at a non-ServiceBay dealer the customer must pay the service provider and submit a valid receipt to receive reimbursement from ABS.
  • Flat Tire Changing Reimbursement: The Flat Tire Changing Assistance benefit includes a transfer to a service provider who will dispatch tire changing help to your customers. This service only covers installing a usable spare tire on the customer's vehicle. This benefit is available 24 hours a day and can be used anywhere, even within the 25 miles radius! (The customer can also choose to deal directly with a service provider of their choice.) The customer must pay the service provider and submit a valid receipt to receive reimbursement (complete instructions are in the Tire Protection folder). This service is valid for 24 months from the time of the plan purchase.
  • Treadwear Warranty (Optional): If the tire tread wears out prior to the warranted miles indicated on the pamphlet, the tire will be replaced on a prorated basis.
  • Vehicles equipped with TPMS: TPMS equipped vehicles may incur additional costs for tire rotations, flat repairs and tire replacements due to additional labor required for resetting the TPMS sensors. This warranty does not cover subsequent damage to TPMS sensors incurred during a flat tire or tire failure.

Tire Warranty Procedures