< Back to blog

07 Nov 2018

Pothole Damage – An Insurance Claim Conundrum

person standing in front of body of water

The number of pothole insurance claims for the first four months of 2018 already equals those placed for the entirety of last year, with an average repair bill of £1,000, data from the AA reveals.

According to their statistics it is estimated that there have been more than 4,200 claims for pothole damage by the end of April. With an estimated average repair bill of around £1,000, that comes to £4.2 million, or more than £1m per month.

Janet Connor, director of AA Insurance, said: "In most cases the damage caused by a pothole, such as a ruined tyre or two and perhaps a wheel rim, doesn't justify making an insurance claim, due to the policy excess and the potential loss of your no claims discount. So the claims we are seeing are clearly much worse than that."

The AA puts the average repair bill at £1,000, while according to MotorEasy’s database of 30,000 warranty customers, axle and suspension damage is one of the most common causes of repair claims in relation to pothole damage.

Last year, its most expensive suspension claim was recorded by a Range Rover Sport at £3,863. This was closely followed by £3,528 for an Audi Q7 and £2,729 for a Mercedes-Benz E-Class. Future advances in technology may help alert drivers to potential hazards such as potholes, but for now we are reliant on our own skill and judgement behind the wheel.

What can we do?

BHIB Councils Insurance offers the following advice to drivers on how to avoid potholes, prevent downtime and vehicle damage and increase your chances of recovering your repair costs:

Flag it, Fund it, Fill it campaign

The AA has recently launched the Flag it, Fund it, Fill it campaign which encourages people to photograph and report potholes.

Connor said: "Potholes can appear almost overnight and it's really important to 'flag it' to the highway authority responsible so that they're aware it exists."

"We're also calling on the Government to 'fund it' by ring-fencing 2p per litre of current fuel duty to create a £1bn pothole fund, specifically for local councils so they can get on top of their pothole problem.

"With that funding, councils can then 'fill it' and make their local roads safe for all road users."

The road to ruin

It has been reported that more than 24,400 miles of road are identified as needing essential maintenance in the next year, according to this year’s Annual Local Authority Road Maintenance (ALARM) survey, published in March.

Local authorities in England and Wales report that the gap between the funds they received and the amount they actually needed to keep the carriageway in reasonable order was almost £556m – a shortfall of £3.3m for every authority. And, it would now take 14 years – up from 12 years in 2016/17 – to get local roads back into a reasonable steady state, provided adequate funds and resources were available.

The transport secretary, Chris Grayling, announced in March a further £100m to help repair any potholes and other storm damage. The cash was on top of £75m in Government funding already given to councils from the Pothole Action Fund this year, as well as the additional £46m boost for highways authorities announced just before Christmas.

Source Fleet News 30.5.18

Want to talk to us?

We are on hand to provide assistance and guidance, and our dedicated team would love to hear from you.

Request a Quote

0330 013 0036

BHIB Councils Insurance is a trading name of BHIB Limited. Registered office is AGM House, 3 Barton Close, Grove Park, Enderby, Leicester, LE19 1SJ. BHIB Limited is registered in England and Wales number: 829660 Authorised and regulated by the Financial Conduct Authority. We are covered by the Financial Ombudsman Service. You can find out more at www.financial-ombudsman.org.uk BHIB Limited also provide risk management services and guidance which is not regulated by the Financial Conduct Authority. Any protection provided by the Financial Ombudsman Service or the Financial Services Compensation Scheme does not apply to this specific business activity and we will inform you of this before undertaking the business activity