Just got a letter from council ( insurance department) saying they are not liable for the damage to my car after hitting a pothole in december, split tyre ect, they say that the area was inspected on the 8.12.06 ! and was within the 12 month period, i.e in another 5 days they would have been negligent

, I have asked to see the report that they did between my accident late monday afternoon 3rd and friday 7th!.
They say as some people said before, unless anyone else has reported it i have no chance ect
Do I just accept this crap, what else to do?
Thanks