Incorporating driver behavior information into vehicle control strategies can significantly improve performance of vehicle control systems, such as active safety systems and driver assistance systems. This paper proposes an algorithm for driver behavior characterization based on handling limits. In order to implement the handling limit-based algorithm, an interacting multiple model estimation technique is applied, which accounts for probabilistic correctness of the multiple models. The proposed algorithm is validated through experimental tests, and the results illustrate potential of the proposed algorithm as a stochastic approach for driver behavior characterization based on handling limits.