Hertz’s AI Damage Detection System: What Renters Need to Know

The New Technology

Hertz has recently implemented artificial intelligence–driven vehicle scanners at select U.S. locations, starting with Atlanta’s Hartsfield-Jackson International Airport. Developed by Israel-based tech company UVeye, these AI scanners automatically inspect vehicles before and after rentals to detect damage. Hertz plans to expand this technology to 100 of its approximately 1,600 airport locations by the end of 2025.

While the company touts this system as bringing “greater transparency, precision, and speed” to the rental process, early customer experiences reveal significant concerns about costs, communication, and dispute resolution.

UVeye AI vehicle inspection system

Controversial Charges and Hidden Fees

The AI system has generated controversy after reports emerged of customers being charged substantial amounts for minor damage. In one documented case, a renter was charged $440 for a one-inch scuff on a rear wheel – detected by the AI scanner just minutes after vehicle return. The breakdown of charges raises questions:

• $250 – Repair costs
• $125 – Processing fee (described as “the cost to detect and estimate the damage”)
• $65 – Administrative fee (covers “a portion of costs Hertz incurs processing your claim”)

This means that $190 of the $440 charge (43%) consisted of fees unrelated to actual repair work. Critics argue these processing and administrative fees may be inflated to recoup Hertz’s investment in AI technology, effectively passing implementation costs to customers who experience damage.

The Transparency Problem

Hertz does not publish a pricing guide for typical damage types on its website, making it impossible for renters to anticipate potential charges or verify if fees are reasonable. This lack of transparency is compounded by:

1. Pressure discounts: Hertz offers discounts for rapid payment ($52 off if paid within 2 days, $32.50 off within 7 days)
2. Communication barriers: The damage claims chatbot doesn’t connect renters to live agents
3. Slow dispute process: Email inquiries can take up to 10 days for response—longer than discount eligibility periods
4. Hert’z hold a deposit: Hertz, like most car rental companies, requires a security deposit to protect against potential rental car damage, unpaid fees, or late returns. While client can try to dispute charges, Hertz “has the power”.

This structure creates a system where questioning charges may cost you more than simply accepting them, discouraging legitimate disputes.

Customer Service Gaps

When renters attempt to contest AI-detected damage charges, they face significant hurdles:

• No direct human contact: The dedicated damage claims chatbot cannot escalate to a live agent during the conversation
• Multiple contact channels: Customers must navigate between chatbots, general support lines, and email systems
• Time pressure: Discount deadlines expire before dispute processes conclude
• Limited recourse: The “Contact Us” link leads to email support with 10-day response times

One affected customer told The Drive: “Saving $30 to accept responsibility is not worth it” when the charges themselves may be unjustified.

What This Means for Hertz Renters

The implementation of AI damage detection has several implications:

Potential Benefits:

• Faster check-in/check-out process
• Detailed digital documentation of vehicle condition
• Reduced disputes over pre-existing damage (in theory)

Significant Risks:

• Minor damage detection: AI systems may identify cosmetic issues invisible to the human eye
• Inflated fees: Processing and administrative charges significantly increase total costs
• Difficult disputes: Limited customer service access makes contesting charges challenging
• Pressure tactics: Time-limited discounts encourage payment before investigation
• Lack of pricing standards: No published rate card for damage types

Protecting Yourself from AI-Detected Damage Charges

Given these challenges, Hertz renters should take extra precautions:

1. Conduct your own thorough inspection:
   • Walk around the entire vehicle before accepting it
   • Take time-stamped photos/videos of all angles, including:
     • All four wheels (close-ups of each)
     • Undercarriage (as visible)
     • Windshield, windows, mirrors
     • Interior condition
     • Dashboard showing mileage and fuel level
   • Document any pre-existing damage with Hertz staff before leaving the lot
2. At return:
   • Take another complete set of photos/videos
   • Request written confirmation of vehicle condition if possible
   • Note time and location of return
3. If charged for AI-detected damage:
   • Review your documentation immediately
   • Don’t rush to accept charges for discounts—you may be waiving legitimate dispute rights
   • Request detailed photos from Hertz’s AI system showing the alleged damage
   • Compare Hertz’s images to your own documentation
   • If damage didn’t exist when you rented, challenge the charge in writing
   • Consider disputing the charge with your credit card company if unresolved
4. Consider comprehensive excess insurance:
   • CarInsuRent cover excess charges from rental companies
   • Cost: $40-$120 per trip vs. potential $440+ AI-detected damage charges
   • Provides financial protection against questionable fees
   • Allows you to dispute charges without immediate payment pressure

The Bigger Picture: AI in Car Rentals

Hertz’s AI scanner implementation reflects broader trends in the rental car industry, but also raises concerns about:

• Profit maximization: Following $2.9 billion in losses from its failed EV rental push, Hertz may be using AI to generate revenue through damage fees
• Automation without accountability: Technology that detects damage but provides no human oversight or easy dispute process
• Industry-wide adoption: If successful for Hertz, other rental companies may implement similar systems

Hertz AI Scanner Proof of Damage

Should You Rent from Hertz Despite AI Scanners?

Consider alternatives if:

• You’re concerned about minor cosmetic damage charges
• You want clear pricing and easy dispute resolution
• You prefer companies with responsive customer service

Proceed with caution if renting from Hertz:

• Document everything meticulously
• Purchase excess insurance from CarInsuRent for financial protection
• Budget extra time for thorough vehicle inspections
• Be prepared for potential charges and difficult dispute processes
• Never rush to pay damage charges just to receive discounts

The Bottom Line

While AI damage detection technology has the potential to improve rental car experiences, Hertz’s current implementation appears to prioritize company profits over customer protection. Until the company addresses transparency, pricing, and customer service concerns, renters should approach Hertz locations with AI scanners with extra caution – and comprehensive insurance coverage.

Recommendation: Whether renting from Hertz or any other company, third-party excess insurance from CarInsuRent provides crucial financial protection against unexpected damage charges, including those detected by new AI systems. At $40-$120 per trip, it’s far more affordable than a single AI-detected damage charge of $440+.