‘Designed to wear you down’: The NSW drivers battling for pothole payouts

NSW motorists face slim odds of being compensated for pothole damage as new figures reveal the state government rejected more than 98 per cent of claims for repair bills last financial year.

Data obtained by this masthead shows Transport for NSW approved just 14 out of 1070 claims received in 2025-26, resulting in a success rate of 1.3 per cent and a total of $35,875.13 in compensation paid to motorists over the financial year.

The figures reflect a longer-term pattern, with Transport for NSW approving 270 of 6189 vehicle damage claims across the past five financial years – a rejection rate of 96 per cent. The data includes claims made following major weather events, including the 2022 floods, which caused widespread damage to the state’s road network.

Motoring groups have attributed the high rejection rate to laws protecting public authorities from liability unless a motorist can establish negligence. That means drivers must not only demonstrate that the relevant authority was aware of a road hazard but failed to address it within a reasonable time frame relative to available resources.

NRMA spokesman Peter Khoury said the compensation claim process can be challenging for many motorists to navigate.

“A 98 per cent rejection rate is extremely high and it shows that the system needs to be reviewed so that motorists have a better understanding of whether they will be successful,” he said.

The data comes against a backdrop of deteriorating roads across the state, with NRMA figures showing it responded to 151,506 wheel and tyre callouts across NSW in 2025-26, up from 149,754 the previous year.

Blacktown recorded the highest overall number of callouts during the period, with 7992, followed by the Central Coast with 7062, Canterbury-Bankstown with 6207, and the northern beaches and Parramatta with 5499 each.

“In some cases, the pothole damage is so severe to the vehicle that tyres can’t simply be fixed or replaced on the side of the road and need to be towed,” Khoury said.

“We’ve seen the callouts we get for tyre and wheel damage go up in the last 12 months, partly because of the sheer weight of pressure on infrastructure in some of the outer suburban council areas due to the amount of development occurring and population growth that’s resulting in more trucks and cars on roads.”

“The government would be better off spending its money on maintenance crews fixing potholes, rather than lawyers defending insurance claims. That’s where taxpayer money should go,” Khoury said.

In Parramatta, Tyres & More owner Sam Badra said motorists were visiting his workshop daily with structural damage caused by potholes, and the cost of some repairs ran to thousands of dollars.

“The roads are a disaster, especially in the south-west, and because of the size of some of the potholes, we’re getting cars coming in with bent rims and damaged suspension,” he said.

“It can be very expensive if you need multiple tyres fixed [and] it shouldn’t be so difficult for motorists to get money back for repairs from the government.”

“At the end of the day, it’s the fault of the roads, not the driver.”

The compensation hurdle for drivers can also be complicated by jurisdictional boundaries. While Transport for NSW manages major state roads, local councils oversee suburban residential streets, meaning motorists can face different claims processes depending on where the damage occurred.

Data released by Northern Beaches Council shows it approved 42 of 532 vehicle damage claims lodged by motorists from 2016 to 2026.

Northern beaches resident Simone Pietschner, who sought compensation following the replacement of a full set of tyres after striking a pothole on Pittwater Road in Narrabeen, said the process was difficult to navigate.

“It’s really arduous because you have to prove that the council is negligent, collect evidence, photos, and get two independent quotes,” Pietschner said.

“If it’s hard for someone like me who is technologically capable, it demonstrates that the system isn’t working, and I think it’s deliberately designed to wear people down.”

A NSW parliamentary inquiry into road trauma in regional areas this month called for greater funding for councils to repair roads, warning that funding shortfalls were compromising safety.

Canterbury-Bankstown Council has also written to the government raising concerns about local roads deteriorating under the weight of replacement bus fleets deployed during Sydney Metro construction works, which the council says has contributed to widespread pothole damage.

In a statement, Transport for NSW defended its record, saying maintenance crews repaired more than 176,600 potholes on state-owned roads in 2025-26 and a further 36,993 in the first two months of the 2026-27 financial year.

The state government has allocated $1.3 billion to regional state road maintenance for the current financial year.

“Transport actively repairs potholes across the state’s road network to help keep the more than 5.5 million motorists travelling safely and efficiently,” a spokesperson said.

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