Around £2.85 million was paid out in insurance claims to motorists in February because their cars were damaged by potholes.
Insurers dealt with the equivalent of 1,900 claims over pothole damage, AA Insurance said. The firm added that the number of motorists claiming for damage done by potholes had gone up by around 600% in three years.
Local authorities across the UK struggle to maintain their roads, with more damage being done by recent icy weather.
AA Insurance's Simon Douglas said: "Nationally, the damage to cars caused by potholes in February alone cost insurers around £2.85 million, the equivalent of about 1,900 claims.
"But that's just the tip of the iceberg because it takes serious damage to make it worth an insurance claim. Garages and tyre centres are dealing with countless thousands of punctured tyres, damaged tracking or broken springs, which don't justify making a claim."
The firm said the Government must use money raised through increasing fuel tax on April 1 on fixing potholes.
