Hertz's AI Damage Scan: A New Rental Fee for You?

• Hertz is introducing scanners that use artificial intelligence software to scan cars before and after they are rented to more accurately and quickly assess damage.
• Hertz aims to add the equipment to 100 locations in the U.S. by the end of 2025.
• A report from The Drive said that a reader who experienced the system was asked to pay $190 in processing and administrative fees to repair a roughly one-inch scrape on a wheel.

Returning a rental car can be nerve-wracking. Will the rental company discover a small ding? Did you remember to take photos of the car beforehand to prove your dent-related innocence? Hertz is trying to make the process more accurate and transparent with new scanners that use artificial intelligence to inspect vehicles before and after the rental period. The scanners are being rolled out across the country now, and while they will likely lead to improved accuracy, an anecdotal account from The Drive shows there still may be some teething issues.

Hertz is employing the scanner technology via a partnership with Israel-based UVeye , aiming to have the scanners at 100 of its roughly 1600 U.S. airport locations by year's end. The first systems have already been implemented at the Hartsfield-Jackson Atlanta International Airport. The technology uses cameras and machine learning algorithms to comb over the vehicle's body, glass, tires, and undercarriage for damage and maintenance issues. The scanners replace the need for manual inspections, and Hertz says they bring improvements to the "frequency, accuracy, and efficiency" of the inspection process.

Hertz also claims that the AI-based scanners increase transparency for customers, but a report from The Drive on one customer's experience shows this may not entirely be true. A reader reached out to the publication to share his experience with UVeye's technology that led to a $440 bill for a roughly one-inch scrape on the wheel of the Volkswagen he rented through Hertz's Thrifty brand.

According to The Drive, the customer dropped the car off at the Atlanta airport and received a damage report identifying the scuff within minutes. The report listed the charges: $250 for the repair, a $125 processing fee, and a $65 administrative fee. The first fee is ostensibly for "the cost to detect and estimate the damage that occurred during your rental," while the second fee reportedly "covers a portion of the costs [Hertz incurs] as a result of processing your claim."

It's unclear if these fees would be the same if the car had been inspected manually by a human, or if the fees are there to cover the expense of Hertz's partnership with UVeye. A Hertz spokesperson provided the following statement: "The vast majority of rentals are incident-free. When damage does occur, our goal is to enhance the rental experience by bringing greater transparency, precision and speed to the process. Digital vehicle inspections help deliver on that with clear, detailed documentation that is delivered more quickly, as well as a more technology-enabled resolution process."

The spokesperson added that the company has decided that "it's fairer to address these costs directly with the customers who cause the damage rather than folding them into the base rental price for all customers."

The situation was complicated when the customer attempted to inquire about the charges. The rental company's chatbot system won't connect to a human agent; it simply flags the claim for review later by a human. The customer could have called Thrifty's normal hotline, but he reportedly said that option wasn't made clear, and he instead followed a link to contact the company via email.

This method can lead to a response time of up to 10 days, which wasn't as useful given the fact that Hertz offered a discount if he paid the claim within two days, or a smaller discount if he paid within the week. While this report is just one anecdote, it appears that while the scanners will likely improve the accuracy and speed at which inspections can be completed, they may bring more costs to the user and be more challenging to dispute.

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