Pothole damage claims filed with UK motor insurers rose sharply in 2026, with data from Tesco Insurance pointing to a widening gap between road infrastructure quality and the cost of settling vehicle damage.
Claims for pothole damage between January and May 2026 were 25% higher than those recorded in the first six months of 2025, despite covering one fewer month. Tesco Insurance also settled 12% more claims in January 2026 alone than it did across the whole of the second half of 2025.
A separate study by the Asphalt Industry Alliance (AIA) found that local authorities in England and Wales face a record £18.62 billion carriageway repair backlog. The ALARM survey published in March also revealed that almost one in six local roads has less than five years' structural life remaining, and roads are resurfaced on average once every 97 years.
The severity shift is more pronounced than the volume rise. Average payouts per successful claim rose 41% year on year, from £3,814 in the first half of 2025 to £5,380 between January and May 2026, according to Tesco Insurance figures.
Wheels accounted for the highest share of pothole damage claims, followed by suspension, engine, underside, bumpers, and body panels. The damage profile points to deep surface deterioration rather than minor kerb strikes.
For brokers managing motor or fleet accounts, the data has direct renewal implications. Average pothole claim values of £5,380 now sit above what many motorists and fleet operators may assume when setting vehicle sums insured. Brokers with commercial fleet clients running older vehicles face particular exposure, as replacement parts costs have risen alongside labour and repair rates. The practical step at renewal is to confirm agreed values and sums insured reflect current parts and labour costs rather than figures set at an earlier renewal, particularly for fleet vehicles over five years old, where the gap between an outdated valuation and today's average £5,380 payout is most likely to leave a client underinsured against a single pothole-related claim.
Motor insurers are already absorbing rising average claim costs across the broader book. Pothole-related severity adds to that pressure. The recent EY market analysis shows that motor insurers are on course for a second straight year of underwriting losses in 2026, with the net combined ratio (NCR) forecast to reach 108%.
Peterborough has led Tesco Insurance's pothole claims table every year since 2020 and retains the top position in 2026. Tonbridge and Northampton complete the top three, while Dorchester, Lincoln and Croydon recorded the fewest claims.
High-frequency concentrations also appear in Plymouth, Chelmsford, Glasgow, Nottingham, and Belfast. Lower-claim areas include Wigan, Huddersfield, Watford, and Liverpool.
Alex Cross, chief customer officer at Tesco Insurance, said the number of claims and the average cost per claim had both risen considerably in 2026.
“Potholes have plagued the nation’s motorists for several years, with our latest data showing that the issue is continuing to worsen," he said. "With the trend likely to continue as roads deteriorate, we advise drivers to take extra care when driving to avoid any costly damage to their vehicles.”
Claim volumes held broadly consistent across the first and second quarters of 2026, with little in the data to suggest the pressure on motor books will ease before year-end.
