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NEW YORK (CNN/Money) - Starting in September, all new vehicles will be equipped with tire pressure monitoring systems that could save about 120 lives a year, the National Highway Traffic Safety Administration announced Friday.

The regulation will require that manufacturers install a system that can detect when one or more of the vehicle's tires are 25 percent or more below the recommended inflation pressure.

Phase-in of the new regulation will begin Sept. 1, 2005.

According to NHTSA, under-inflated tires can adversely affect fuel economy, lead to skidding and loss of control and hydroplaning on wet surfaces. It can also increase stopping distance and the likelihood of tire failures.

The tire pressure monitoring system was required by Congress when it enacted the Transportation Recall Enhancement, Accountability, and Documentation (TREAD) Act in 2000.

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