A rear toe control (RTC) system and method for a vehicle includes rear actuators for applying rear steering to rear wheels of the vehicle and rear sensors for measuring individual toe angles of the rear wheels. The system further includes a RTC failure module that determines when the RTC system has failed and a road condition determining module that determines whether the vehicle is encountering a poor road surface condition. An electronic control unit (ECU) is disposed on the vehicle and is configured to impose a speed limit for the vehicle when the RTC failure module determines that the RTC system has failed and the road condition determining module determines that the vehicle encountering a poor road surface condition.