Drivers could be forking out nearly £3 million every day – or £1 billion a year – to repair cars damaged by Britain’s crumbling roads, according to Potholes.co.uk.

The road maintenance campaign website, set up by Warranty Direct, is warning that Britain will have “Third World” roads unless something significant is done.

Potholes.co.uk analysed 150,000 of Warranty Direct’s policies over a three-year period and found that nearly six percent of vehicles suffer axle or suspension damage linked to potholes or road defects each year. The average cost of repair stood at £312 but individual bills were as high as £4,000.

Figures for February 2011 show that 39 percent more potholes were reported on potholes.co.uk than in the same month in 2010.

Duncan McClure Fisher, of Warranty Direct, said: “Unless something more is done soon, we’ll be faced with a road network that would be more at home in a Third World country.

“Whether it’s the cumulative effect of continuously driving on bad roads or the sudden jolting of a deep pothole which does the harm, our crumbling roads are costing motorists millions.”

“The recent council injection of £100 million will not solve matters. Councils need to wise up and get creative about how to address the problem.

“Back in December, we predicted that a gloomy combination of a very cold winter, huge underfunding and mediocre repairs to roads could potentially lead to the worst ever pothole season – unfortunately our forecast was largely correct.”