Compare your tire protection quote with estimated qualifying claim benefits, break-even claims, and the replacement cost you may still pay.
Tread details for a prorated plan
Advanced options
Plan limits and uncovered charges
This is the tire reimbursement after any benefit cap and deductible.
This includes the tire cost and entered uncovered charges after the estimated plan benefit.
Calculation details
A value below 1 means one similar qualifying claim would recover the plan price.
This is the per-tire plan fee multiplied by the number of covered tires.
Table of contents
How to use our Tire Road-Hazard Warranty Break-Even Calculator
- Choose How does the plan pay? from your plan terms. Choose full reimbursement only if tread wear does not reduce the tire benefit.
- Copy the protection fee into Plan price per covered tire ($), then enter the Number of tires covered on the quote.
- Enter the tire-only amount in Replacement tire price ($ per tire) and choose a planning scenario in Expected qualifying tire claims.
- For a prorated plan, enter the original, current, and cutoff tread readings in 32nds. Type 6 or 6/32 for a 6/32-inch reading.
- Open Advanced options for a deductible, benefit cap, or charges left to you. Sanity-check that one-claim benefit does not exceed the tire price before the deductible and that the remaining cost includes any uncovered charges.
Definitions
Qualifying tire claim: A covered, nonrepairable road-hazard event under the specific plan terms. Normal treadwear and excluded damage do not count.
Full reimbursement: A benefit design that starts with the entered replacement tire price rather than reducing it for tread used, subject to any cap and deductible.
Prorated by remaining tread: A benefit design that pays only the share of usable tread remaining between the original tread depth and the plan tread cutoff.
Plan tread cutoff: The tread depth where the plan treats usable tread as ended for this estimate.
Deductible: The amount you pay toward each qualifying claim before the plan benefit is calculated.
Maximum plan benefit: A per-tire dollar limit that can reduce the tire reimbursement.
Break-even claim count: The number of similar qualifying claims whose estimated benefits equal the total upfront plan price.
Common mistakes and quick fixes
Mistake: Entering the full set of four tire prices in Replacement tire price ($ per tire).
Fix: Enter the price of one matching replacement tire because one qualifying claim is modeled for one damaged tire.
Mistake: Using the number of tires on the vehicle instead of the number on the plan in Number of tires covered.
Fix: Copy the tire count that actually receives the plan fee from the quote or invoice.
Mistake: Treating Expected qualifying tire claims as a prediction that a claim will happen.
Fix: Use 0, 0.5, 1, or another scenario you want to compare; it is a planning input, not a personal risk forecast.
Mistake: Typing 0.1875 for Current tread depth (32nds of an inch).
Fix: Enter 6 or 6/32 for a 6/32-inch reading. The field uses counts of 32nds, not inches.
Mistake: Leaving mounting, tax, TPMS work, or disposal out of the estimate when the plan does not pay them.
Fix: Add those amounts to Charges the plan does not cover ($ per claim) so the remaining replacement cost is more realistic.
Mistake: Ignoring a per-tire cap or deductible in the certificate terms.
Fix: Enter both Maximum plan benefit ($ per tire) and Deductible per claim ($) when they apply.
Limitations & Key Assumptions / Boundary Conditions
- This is a planning estimate using the plan terms and tire price you enter. It does not determine whether damage qualifies for a claim.
- Road-hazard coverage can exclude normal wear, repairable damage, misuse, time-expired coverage, and other situations listed in the plan certificate.
- The calculation models one damaged tire per qualifying claim. It does not estimate costs of replacing matching tires, pairs, or a full set when a vehicle or shop requires that.
- For prorated reimbursement, the estimate assumes the plan uses remaining usable tread: current tread minus cutoff, divided by original tread minus cutoff. Use the plan's own formula if it differs.
- Replacement price, taxes, labor, mounting, balancing, TPMS work, disposal, and other charges can change before a claim. Include only charges the plan leaves to you in Charges the plan does not cover ($ per claim).
- Expected qualifying tire claims is your scenario choice, not a probability estimate or a prediction of future tire damage.
Methodology
Calculation method
The calculator first finds the total fixed plan charge. Full reimbursement uses the entered tire price as the starting benefit. Prorated reimbursement uses the share of usable tread remaining. A nonblank cap limits that starting benefit, then the deductible is subtracted. The benefit cannot fall below $0.
total plan price = plan price per covered tire x number of tires covered
usable tread share = (current tread - plan tread cutoff) / (original tread - plan tread cutoff)
benefit factor = 1 for full reimbursement, or usable tread share for prorated reimbursement
gross claim benefit = tire price x benefit factor, limited by maximum plan benefit when entered
estimated benefit from one qualifying claim = max(0, gross claim benefit - deductible per claim)
estimated plan value for your claim scenario = expected qualifying tire claims x one-claim benefit - total plan price
exact break-even claim count = total plan price / one-claim benefit
estimated replacement cost left after one claim = replacement tire price + uncovered replacement charges - one-claim benefit
Worked example
A plan costs $20 per tire for four tires, so its total upfront price is $80. With a $200 replacement tire, a $150 cap, and a $20 deductible, one qualifying claim has a $130 benefit. At one expected claim, estimated plan value is $130 minus $80, or $50. If $35 in service charges are not covered, the estimated amount left after that claim is $200 + $35 - $130 = $105.
For prorated claims, original tread must be greater than the cutoff, and current tread must be between the cutoff and original tread. A zero one-claim benefit cannot recover a positive plan price, so break-even is shown as not possible instead of dividing by zero.