North Yorkshire Council says the figure has dropped from more than £1m paid out the previous year.
Pothole compensation figures were discussed at a meeting of the Conservative-run executive in Northallerton on TuesdayPotholes have cost a council £385,000 in insurance claims for damage to cars in one year.
North Yorkshire Council has one of the largest road networks in the country, with more than 5,600 miles of roads.
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