In this paper we present an improved version of a fault tolerant multisensor switching scheme previously proposed by the authors. The scheme uses multiple sensors-observer pairs and a switching mechanism to automatically detect the healthy components of the system and avoid the use of faulty components in closed loop. The improvements proposed in the current paper include the extension to more general sensor schemes and fault models, and the derivation of a new set of less conservative conditions for fault tolerance guarantees. As a consequence of these improvements, the multisensor scheme can now be used in applications that were not possible before, as illustrated by an example of vehicle lateral control.