Here's What Occurs When Hertz’s AI Scanner Detects Damage on Your Rental

      Customers renting cars from certain U.S. airports will now pass through Hertz's AI-based scanners when picking up and returning their vehicles.

      In April, we previously reported on Hertz's intention to use artificial intelligence for scanning cars before and after rentals to assess damages and apply relevant charges. This AI system has been operational for several months at select locations nationwide. Recently, a customer of Hertz-owned Thrifty contacted The Drive to share his experience after a scanner detected damage on his rental vehicle. However, this was not an experience he relished.

      A reader named Patrick rented a Volkswagen from Hertz’s Hartsfield-Jackson International Airport location in Atlanta, which was the first in the country to implement this technology. Upon returning the car, he noticed a 1-inch scuff on the driver’s side rear wheel. Patrick reported that he was notified of the damage "minutes" after he returned the VW, along with charges for the damage: $250 for repairs, a $125 processing fee, and an additional $65 administrative fee—totaling $440 for curb rash on a single wheel.

      This information is communicated to renters like Patrick via a web application. While it's easy to deduce the repair fee, the purposes of the other two charges may seem less clear. Hertz describes the processing fee as "the cost to detect and estimate the damage that occurred during your rental," while the administrative fee "covers a portion of the costs incurred by Hertz as a result of processing your claim." Hertz collaborates with UVeye, an Israeli company focused on applying AI to automate vehicle inspections.

      Patrick received proof of the damage on his phone, which included the option to compare it to an image of the vehicle’s condition before he drove off. When he was presented with the bill, he had the opportunity to pay it immediately. Interestingly, he noted that Hertz offered a $52 discount if he settled the bill within two days, or a $32.50 discount for payment within a week.

      Patrick expressed a desire to question the charge. Unfortunately, Hertz's chatbot system for handling damage claims does not currently allow for live human interaction. Instead, it can flag a claim for later review by an agent, who may then contact the customer about the issue, or the customer has the option of calling Thrifty's standard support hotline. However, this alternative was not clearly provided to Patrick on the website, prompting him to use a “Contact Us” link to email Thrifty, a process that could take up to 10 days for a response. It’s important to note that the discount is only valid if payment is made within the week.

      The Drive reached out to Hertz regarding Patrick’s situation and to ask broader questions about their AI scanning policies. A representative replied with a statement: "The majority of rentals are incident-free. When damage does occur, our goal is to enhance the rental experience by providing greater transparency, precision, and speed to the process. Digital vehicle inspections help achieve that with clear, detailed documentation delivered more quickly, as well as a more technology-driven resolution process."

      One question posed to Hertz that went unanswered was whether fees for customers who experience incidents are higher at locations utilizing UVeye scanners compared to those that do not. It would seem logical for them to be pricier if the processing fee relates to “the cost to detect and estimate” damages incurred during rentals. Currently, Hertz does not provide listed prices for estimating the costs associated with various types of damage, leaving customers somewhat uninformed until issues arise.

      As of the time this article was published, Patrick stated he had not yet paid the charges and would not take the discount, explaining via email that "saving $30 to accept responsibility is not worth it."

      Hertz's use of AI in this manner signifies a shift in industry practices and standards, which will require consumers some time to adapt. The company claims that UVeye’s technology enhances transparency regarding damage claims; indeed, customers can see precisely what the scanners identified, and the response time is notably quick. However, this system arguably introduces confusion by making it challenging for customers to easily communicate with a live agent for inquiries or issues, while simultaneously incentivizing quick payment.

      In my opinion, it would greatly benefit Hertz to integrate live agents into its chatbot system to alleviate some complexities. However, whether or not this change occurs, Patrick’s experience is likely representative of what many car renters will increasingly encounter as more companies adopt AI for these inspections. Hertz anticipates having scanners operational at 100 of its approximately 1,600 U.S. airport locations by the end of the year.

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