In this paper, a novel algorithm for indirect tire failure indication is described. The estimation method is based on measuring changes in the lateral dynamics behavior resulting from certain types of tire failure modes including excessive deflation or significant thread loss in a combination of tires. Given the fact that both failures will notably affect the lateral dynamics behavior, quantifying these changes constitutes the basis of the estimation method. In achieving this, multiple models and switching method are utilized based on lateral dynamics models of the vehicle that are parametrized to account for the uncertainty in tire pressure levels. The results are demonstrated using representative numerical simulations.