This paper investigates the effects of tire characteristics on vehicular rollover and lateral stability. Two tire types with different adhesion coefficients were selected to evaluate the relation between vehicular rollover propensity and lateral stability. Simulations were used to calculate the critical rollover factor and to analyze the effects of vehicular parameters on handling, including the center of gravity, payload condition, and vehicle speed, with the two proposed types of tires. To replicate an actual vehicular response, particularly during extreme driving operations, a two-degrees of freedom (DOF) planar two-track model with nonlinear Pacejka’s Magic Tire Formula was applied. Subsequently, a 7-DOF vehicle vibration and roll model was developed to consider the effects of suspension and road excitation. The tire, steering, and vehicle vibration models were implemented in MATLAB/Simulink by subjecting them to the Fishhook maneuver steering input defined by the National Highway Traffic Safety Administration. The results confirm that the adhesion capacities of tires have an opposite effect on lateral vehicle stability and rollover propensity, while both suspension parameters and road excitation inputs significantly influence vehicle rollover and lateral stability. Additionally, we identified a positive correlation between vehicle properties and lateral handling, especially when tire characteristics are considered.