Study: Vehicle Damage from Potholes Tops $27B in Five Years

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June 24, 2014—A recently released national survey revealed that potholes have cost consumers and insurance agencies more than $27 billion in vehicle damage over the past five years.

The survey, commissioned by Trusted Choice and the Independent Insurance Agents & Brokers of America (IIABA), also found that most people who needed repairs from poor road conditions paid for the repairs out of pocket.

“Potholes and poor road conditions aren’t just an inconvenience, they are an expensive and dangerous result of harsh winters like we recently experienced in many parts of the country,” says Robert Rusbuldt, IIABA president and CEO. “This survey highlights how widespread the pothole problem is on our roadways and that the costs are astronomical to both the insurance industry and to consumers.”

The study showed a breakdown of who pays for a car repair related to a pothole:

  • 65 percent pay out of pocket
  • 31 percent report the incident to their insurance company
  • 3 percent said local authorities paid the bill

The survey collected data on 2,565 vehicles and weighted responses by age and gender to represent the general U.S. population over 18 years old. 

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