Scottish councils pay over £2m in pothole compensation claims
Scottish councils have paid more than £2 million in compensation for pothole-related vehicle damage over the past five years, according to a BBC investigation.
Between the financial years 2020/21 and 2024/25, local authorities across Scotland received over 18,600 claims related to vehicle damage caused by potholes. However, only approximately 22% of these claims resulted in compensation payments.
Drivers and mechanics interviewed by BBC Scotland highlighted that encountering potholes can lead to costly vehicle repairs.
Cosla, the organisation representing Scotland's councils, stated that council finances are under "intense pressure" and that authorities must "juggle competing priorities". Meanwhile, the Scottish government noted it has provided "record funding" to local authorities as part of the 2026/27 Budget.
'They're everywhere and it's scary'
Marie McCallum, a mobile hairdresser from Macduff, shared her experience with BBC Scotland after successfully claiming compensation from Aberdeenshire Council in 2024 when her car was damaged by a pothole.
"I was annoyed the pothole just ripped the tyre and there was no warning on the road," she said. "It happened on a bend and there was a lorry coming the opposite way so I had no choice but to go over it. It was a bit scary."
Describing the claims process, McCallum explained:
"I sent an email to the council, not expecting compensation back. I had to send in photos, which luckily I took at the time, and my receipt. It went to Aberdeenshire Council and then it had to go to their insurance company. I think I got 90% of the bill."
The pothole caused nearly £200 worth of damage to her car.
"I live in Macduff and on the main road there is a big pothole, you've got to avoid it every time or slow down. I'm frightened I'll go over it and rip the tyre again."
"Every time you go on the road you've really got to watch where you're going because there are so many potholes."
Which councils have paid out the most?
Freedom of information requests obtained by the BBC reveal that Scottish councils paid a total of £2,029,045 in compensation for pothole-related vehicle damage. However, only 25 of the 32 Scottish councils provided complete data, so the actual amount is likely higher.
On average, 22% of claims were successful in Scotland, slightly below the 24% average across Britain. In total, nearly 5,500 claims resulted in payouts.
Compensation rates vary significantly by council area. For example, the City of Edinburgh, North Ayrshire, and South Ayrshire councils paid out on just 6% of claims, while Highland Council compensated 74% of claims.
Highland Council also had the highest total compensation payout, paying nearly £580,000 over the five-year period. In contrast, Orkney Islands Council paid compensation on only one of five claims, with the lowest total payout of £727.
Dumfries and Galloway received the highest number of claims, with over 3,100, whereas Shetland Islands Council received only one claim.
In Aberdeenshire, where Marie McCallum resides, 22% of claims were successful, resulting in nearly £140,000 in total payouts.
Is the problem getting worse?
The AA recorded 5,241 pothole-related incidents in Scotland in March 2026, representing an increase of nearly 8% compared to the previous month. Its monthly average for 2026 is 5,295 incidents, higher than in recent years.
Lewis Mennie, manager at Westhill Cars, told BBC Scotland that his garage has observed a "significant increase" in vehicles requiring repairs to suspension components, wheels, tyres, and wheel alignment due to pothole damage.
"It causes a lot of frustration for our customers because those repairs can be expensive," he said.
"These components aren't needing replaced for any other reason other than due to the road conditions. We're seeing cars that are maybe one or two years old requiring replacement parts that they shouldn't be needing. It's purely down to the road conditions."
"It's getting to the stage now where it could become a safety issue because of people swerving potholes."
Despite indications that Scotland's pothole problem is worsening, drivers are not automatically entitled to compensation from councils. Compensation is only payable if the council is legally liable. This applies equally to cyclists and pedestrians.
Claims must relate to roads maintained by the council, though there are exceptions, such as incidents caused by third parties working on the road.
Claims can be made for vehicle damage, personal injury, or property damage or loss.
Stretched council budgets
The compensation figures come amid increasing financial pressures on Scotland's councils, with some introducing tax increases above inflation for the new financial year.
A spokesperson for Cosla, representing the 32 local authorities, said:
"Councils are committed to keeping roads for which they are responsible safe and carry out critical maintenance where necessary.
After another year of flat cash capital settlement, council finances are under intense pressure which has an impact on local authorities' capital programmes and revenue spend. This means that the funding needed to meet the high standards and efficiency for essential services, including road maintenance, must go even further and councils need to juggle competing priorities.
This will inevitably have consequences which councils do their best to minimise for their communities."
The Scottish government added:
"The Scottish Budget 2026/27 provides record funding of £15.7bn to local authorities, including £250m of unrestricted general revenue grant.
It is for individual local authorities to allocate the total resources that are available to them on the basis of local needs and priorities."
£13.5m payouts across Britain
Across Britain, over 146,000 claims for pothole-related vehicle damage were submitted over the past five years, with councils paying out £13.5 million in compensation. However, this represents only a fraction of the total claims submitted.
Out of 207 local authorities holding this information, 147 provided data to the BBC on the number of pothole claims received and those that were successful over the last five years.
Additional reporting by Olimpia Zagnat, Ben Philip, and Marta Leshyk.
