Pothole compensation claims double in a year - but most are rejected

The number of pothole compensation claims to councils in Britain doubled in a year, new RAC research has revealed.

A Freedom of Information (FOI) request by the RAC found that 20,432 claims were submitted to 18 local authorities with the largest road networks in 2023, compared with 8,327 in 2022.

Potholes form over time due to weather and wear and can cause a lot of damage to vehicles.

If a pothole damages your car, you claim compensation from your local authority, but the RAC's latest research reveals a high number of rejected claims and pitiful payouts from councils.

Here, we look at issues with payouts and how to have the best chance of a successful claim.

Pothole claims are on the rise - but most are rejected

Many councils saw a significant increase in compensation claims in 2023 compared with the year before.

Surrey County Council saw the biggest increase, from 734 to 3,418, followed by Hampshire, where claims rose from 750 to 2,654.

But just as pothole damage claims have increased, so too have the proportion of claims refused by councils.

Last year, just 15% of compensation claims made to 17 councils resulted in payouts. Gloucestershire County Council had the highest proportion of claim refusals, at 98%, followed by Essex County Council, which refused 95% of claims.

The below table shows you how many claims were made (and how successful they were) last year.

Why do councils reject claims?

Under the Highways Act 1980, councils are permitted to refuse claims if they weren't aware that the pothole existed.

Of the 8,172 claims rejected by nine councils (who responded to the RAC's question), 74% were refused on these grounds. Gloucestershire and Hertfordshire councils refused every single claim made on this basis.

It's important to report any potholes you come across to your local authority so that motorists who might experience vehicle damage have a better chance of securing compensation.

The figures show that 13 councils spent a total of more than £166,000 in legal fees to defend pothole claims in 2023.

Lincolnshire County Council spent the most, totalling nearly £96,000, followed by Devon County Council, which spent £33,232, and Essex County Council at £19,685.

• Find out more: watch our video on how to claim pothole damage compensation

Payouts fall short of repair costs

When payouts were issued, they often fell short of realistic repair costs.

The RAC believes a typical repair bill for pothole damage, beyond a puncture, would total £460 - but the average payout from councils was calculated at just £260 each.

The below table shows you how much each council paid out in compensation claims in 2023.

New funding pledged to fix potholes

The RAC says its research is a 'stark reminder' of the ongoing poor condition of many of the UK's roads.

In the recent Autumn Budget, Chancellor Rachel Reeves pledged £500 million to fix one million potholes in the next financial year.

Simon Williams, the RAC's head of policy, says: 'We have long argued that local authorities need greater certainty of funding so they can tackle the root cause of the UK's pothole plague. For this reason, we're pleased they'll receive £500m to soon start the process of improviding their road networks.

'It's vital that this money is used by councils not to merely fill potholes, but to carry out preventative maintenance – through surface dressing roads at regular intervals to stop roads falling apart in the first place. Roads that are beyond reasonable repair should be resurfaced.'

• Find out more: what changes did Rachel Reeves announce in the Autumn Budget 2024?

How to make a successful pothole claim

Despite low success rates, it's always worth making a compensation claim if your vehicle is damaged by a pothole. 

To have the best chance of a successful payout, make sure you:

1. Collect pothole evidence - note exactly where the pothole is, take pictures of it and the damage it has done to your vehicle.
2. Report the pothole to your highways agency or local authority. If your bike has been damaged, report it to Cycling UK's Fill That Hole.
3. Get a quote for a repair to fix the damage to your vehicle. If you've had to get the damage fixed urgently, keep the receipt.
4. Make a claim to your local authority by checking its claims procedure. You could also consider making a claim via your car insurance policy, however, you can't claim through both your insurer and the local authority.
5. Appeal a rejected claim. Ask to see details of the council's road inspection reports to see whether the council did follow it as it should have. If it hasn't, you can appeal its decision by taking the claim to the small claims court. We suggest you seek legal advice first.

But whether your vehicle is damaged or not, it's important to report any potholes you come across to the relevant local authority. This is to prevent councils from rejecting claims on the basis that they weren't aware of the pothole existing.

Read more: how to report a pothole and claim compensation