Pothole damage payouts from councils dry up as drivers count cost of crumbling roads

DRIVERS are paying the price for Britain’s crumbling roads as pothole damage payouts from struggling councils dry up.

Edmund King, president of the Automobile Association (AA), said motorists are being forced to turn to insurers to cover the cost of vehicle damage caused by potholes, as local authorities increasingly fail to compensate motorists.

With breakdown callouts for pothole damage at a five-year high, this is contributing to car insurance premiums rising to record levels, added Mr King.

Drivers can make claims with local authorities for damage from potholes, however, new analysis of official figures released last month shows funding has dropped significantly.

From 2019-23 funds paid to compensate drivers for damage from potholes fell from £3.7million to £1.7million across 85 councils, according to data obtained through the Freedom of Information Act. This is despite the number of claims rising 70 per cent between 2021 and 2023.

Mr King said: “A lot of local authorities are clamping down on the money they use to pay for damage. Councils have tightened up the criteria whereby they give out compensation. We’ve seen a massive increase in incidents on the roads. Drivers are damaging two wheels, two tyres and steering, which could be £5,000.

“We’ve had the most pothole-related damage for the last five years,” which has “not helped premiums”, he added,

Mr King also said that the amount of money paid out by councils in compensation claims “varies enormously” adding that “some councils are literally giving out next to nothing”.

Many local authorities – which have said they are behind on £14billion in road improvements – have said finances are at breaking point.

Since 2020, Birmingham, Nottingham, Woking and four other councils have issued section 114 notices, effectively declaring they can no longer afford to go on.

Last year, the AA was called out to 632,000 incidents where cars had sustained damage as a result of hitting potholes, equating to more than £474million-worth of repairs, according to its research. But just a fraction was paid out in compensation claims by councils in that time.

Warrington, for example, received 50 claims for pothole damage last year and only paid out £80.10. Walsall, Torbay, Knowsley and Waltham Forest councils paid out nothing that year despite each receiving more than a dozen claims. Surrey paid out the most last year for compensation from pothole damage, giving almost £237,000 to successful claimants.

‘A lot of local authorities are clamping down on the money they use to pay for damage’