There is now one pothole for every mile of road according to data gathered by Britannia Rescue.
Figures obtained under a Freedom of Information Act request showed councils have paid out £2.5 million in compensation to motorists in the past financial year for pothole damage to cars.
The company also said a survey of 2001 UK adults had shown they had suffered car damage as a result of poor road surfaces in the past 12 months. Britannia said the harsh winter followed by a dry summer had particularly harmed road surfaces and exacerbated the problem.
It added UK councils received 32,600 compensation claims in 2012/13 for everything from potholes ruining wheel rims, to puncturing tyres and suspension damage - up 79% on 2011/12.
The company described road maintenance in the UK as "severely under-funded with around £16 spent per driver on maintaining road surfaces and fixing potholes - less than 10% of the annual road tax bill".
It added: "Short-term fixes are often chosen over longer-term solutions, with close to one-quarter (23%) of councils admitting they usually temporarily fix potholes rather than resurface the area. The average cost of repairing a pothole is £50, meaning the amount paid by councils in compensation could have been used to repair 50,000 potholes."