Pothole compensation claims: Over £10.2 million paid out in three years - these councils are paying out the most

New research has revealed which councils have had to pay out the most in pothole compensation claims to drivers in recent years, giving a potential indication of where such damages are more likely to occur.

Overall, Staffordshire County Council came top of the list, having paid out £1 million for these claims between 2022 and 2024 - almost twice as much as the council in second place.* 

The research comes from Go.Compare car insurance, which submitted a freedom of information request to 171 councils across England and Wales about their performance on pothole repairs.

At least £10.2 million in compensation claims was paid out across England and Wales during this time, just under a tenth of which was paid out by Staffordshire County Council. However, some of the councils contacted did not provide data on this topic, meaning the true total could be even higher than this. 

According to the figures, East Sussex County Council paid out the second-highest amount at £598,112, while Derbyshire County Council came third, paying out £526,089.62. Havering and Wiltshire made up the rest of the top five, both of which paid out around £450,000 to drivers.

Councils paying the most in pothole compensation claims to drivers (2022-2024)

Derbyshire, Oxfordshire and Surrey also ranked among the councils which reported the most potholes during this period. Additionally, Surrey placed seventh on the list of councils with the most potholes per mile last year (17.5)**, suggesting vehicles are particularly likely to suffer pothole-related damage when travelling in the countryside.

Tom Banks, motoring expert at Go.Compare car insurance, commented: "It’s no secret that the nation is facing a pothole crisis. Clearing the backlog of pothole repairs will cost the country a fortune, and in the meantime, our data shows that councils are having to pay out millions to drivers due to the damages they’ve caused to their vehicles, too.

“Although potholes can damage your vehicle, you can minimise the chances of this by driving slowly and maintaining a safe distance from the vehicle ahead. This will give you plenty of time to spot and avoid any potholes on the road. Keep an eye out for puddles, too, and be wary of going over them, as they could be hiding a huge pothole underneath them.

“If you get unlucky and your car is damaged by a pothole, there are generally two ways to make a claim – either through the local authority where the incident took place, or your insurance company. With pothole claims, your insurance shouldn’t necessarily be your first port of call, as making a claim could potentially cause your car insurance premium to increase the following year.

“To submit a claim through the local authority, gather all the information you can – including photos of the pothole and its position on the road, a precise location, and photos of the damage to your vehicle. Then, send all of this information with a claim letter to the local council for them to review.

“If you do decide to claim through the local authority, remember that you’ll still need to tell your insurer about the damages - even if you don’t intend to make a claim. Insurers expect to be updated whenever your vehicle is damaged, so if you don’t let them know and something goes wrong later down the line, they might refuse to pay out.

“If you decide to claim via your insurance company, it’s important to note that doing so could mean your insurance premium increases the following year. There is also usually only a limited time after an incident when you can make a claim, so make sure to read your policy details carefully.”

More statistics on Go.Compare’s 2025 pothole survey can be found here. A guide on what to do if your car is damaged by a pothole, with easy-to-follow steps to make sure that drivers aren’t left out of pocket, is also available on Go.Compare’s website.

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