Pothole Claims Up 90% in Three Years, Says RAC: What This Means for Business Owners and Drivers

Why Pothole Claims Are Spiking - and How It Impacts Businesses

Have you ever driven over a pothole and wondered if you could actually claim compensation? You’re not alone. In fact, according to the latest figures from the RAC, pothole claims up 90% in three years, says rac, and the numbers are hitting small businesses and service providers especially hard.

If you run a fleet, a delivery business, or even a local shop with customers who rely on the road, these rising claims aren’t just numbers on a report - they’re real financial pressures on the local economy. So, what’s behind this dramatic surge, and why should business owners pay attention?

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Let’s break it down. Number of compensation claims for pothole damage soars 90% in three years as more than 53k apply in 12 months

What the RAC’s Latest Data Reveals

The RAC analyzed data from 177 local councils and found that pothole-related compensation claims jumped from 27,731 in 2021 to a staggering 53,015 in 2024. That’s an unbelievable 90% increase over just three years. It’s worth noting, though, that even with more claims, only a quarter of them resulted in actual payouts last year.

Still, that’s a huge uptick for anyone who’s ever had to deal with vehicle repairs after a rough road trip. For business owners, this means more than just higher repair costs for employees or company vehicles. It’s about customer satisfaction and brand reputation.

Imagine your clients having to deal with pothole damage on their own - it could strain your support services and leave them frustrated.

Why Are Potholes Becoming Such a Big Problem?

First, let’s talk about the roads themselves. The analysis from the RAC points to increasing pressure on local council budgets. Road maintenance funding is often stretched thin, especially with aging infrastructure and rising traffic. When potholes go untreated for too long, they get deeper and wider - making them far more likely to cause significant damage to vehicles.

The RAC’s Simon Williams highlighted that many councils have strict definitions for what counts as a “pothole.” If a pothole is just 4 centimeters deep or wider, it might still meet the threshold for a claim, but the unevenness or sudden appearance can cause severe jolts - especially for cars with worn suspensions.

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For businesses with high-mileage fleets, this translates into unexpected maintenance costs and downtime.

How Does This Affect Small Businesses?

If you’re running a small business that relies on vehicles - think food delivery, logistics, or even a delivery service for retail - these figures are a wake-up call. The average repair bill for pothole damage can easily hit around £590, and that’s just for a standard car. Multiply that by the number of vehicles you own or manage, and the costs can add up quickly. Here’s where business owners need to act:

• Review your fleet maintenance schedule: Proactive maintenance can prevent many pothole-related issues.
• Communicate with customers: Let your clients know about the rising pothole problem and offer alternatives, like route updates or ride options.
• Consider insurance options: Some policies offer extra cover for road-related incidents - worth checking if you’re frequently affected.

What Can Drivers and Businesses Do About Rising Pothole Risks?

Both drivers and businesses can take steps to manage the risk of pothole-related disruptions. For drivers, staying vigilant and reporting severe potholes is helpful, but prevention is better. For businesses, investing in route mapping software that flags bad roads or partnering with local councils for road maintenance updates can make a real difference. Here are some actionable tips if you’re a business owner:

• Conduct regular vehicle inspections: Check for early signs of suspension wear that could be exacerbated by potholes.
• Update your staff on local road conditions: Quick communication can reduce stress and prevent accidents.
• Build a relationship with local councils: Some councils offer business-friendly road reports or maintenance updates - don’t hesitate to ask.

Expert Insights: The Bigger Picture

The Local Government Association (LGA) has pointed out that budget constraints are making it even harder for councils to fix roads quickly. Meanwhile, the Department for Transport is allocating £7.3 billion over four years to improve road surfaces - still, the backlog remains.

As Simon Williams from the RAC notes, the definition of a pothole and the timing of repairs play a huge role in claim numbers. In short, this is a systemic issue, not just a temporary spike. So, whether you’re a driver or a business owner, understanding the trend of pothole claims up 90 in three years says rac should be a priority.

It’s about more than just your next repair bill - it’s about staying ahead of the curve in a changing road environment.

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Final Thoughts: Stay Prepared, Stay Informed

Road conditions are only getting trickier, and potholes aren’t going away soon. By staying informed about these trends and taking practical steps now, you can protect your business (and your customers) from the financial and safety risks on the rise.

Keep an eye on local council updates, maintain your vehicles proactively, and don’t hesitate to reach out for expert advice or support. After all, in the world of business, being prepared for the unexpected isn’t just smart - it’s essential.

For more tips on managing vehicle-related risks and business resilience, check out the Department for Transport’s official road safety guidance and the RAC’s resources on vehicle maintenance.