The president of the Automobile Association, Edmund King, said "about a third" of AA members had made insurance claims in the past two years as a result of cars being damaged by potholes.
Tony Ball, chairman of Transport for the Local Government Association said too much of the budget for resurfacing roads is spent on filling in holes, and not enough on resurfacing.
Speaking to Daybreak he said, nationally there is a £3 billion budget to fix potholes, but that too much of the money is spent on "reactive, as opposed to proactive."
Mr Ball added that local councils need more upfront funding to fix the solution.
A report has found that £10.5 billion is needed to fix the potholes in England and Wales.
Motorists told Daybreak that councils should fix the roads because they are "all over."
One woman said: "I think it's disgusting and I think it's really damaging my car. It's about time the council did something with all the road tax, council tax and all the rest that we pay them."
AIA chairman Alan Mackenzie said emergency funding from the Government would be "welcome" when dealing with potholes, but spending money "here and there" makes "little difference."
He added that the £215 million announced in the autumn to improve road conditions "doesn't even cover the £338 million" of repair needed from last year's rainfall.
Constantly mending damaged roads, rather than dealing with potholes in a "planned and cost-effective way" is "nonsensical and costly to the country", AIA chairman Alan Mackenzie said.
– Alan Mackenzie, Asphalt Industry Alliance chairman
The Department for Transport's potholes review was a welcome initiative and concluded that 'prevention is better than cure'.
When you add up all the costs incurred by not following this advice, it's hard to understand why central Government cannot find a way to invest in this much-needed work and save on higher costs in the future.
Parts of England and Wales face a "crumbling road crisis", with an £10.5 billion needed to repair all the countries potholes, a report has said.
A report from the Asphalt Industry Alliance (AIA) showed that local authorities in England and Wales filled in more than two million potholes last year.
The cost of filling was £113 million, with £32 million being paid out in compensation to claims.
Compensation payouts were 50 per cent up on the 2011 figure, with £13 million spent on staff time dealing with compensation claims.