Hertz's AI Technology Issued an Unexpected Charge for a Dent He Was Unaware Of, and He's Not the Only One | Carscoops

      Hertz's new scanning technology identified a minor dent on a rental return that a human might have overlooked.

      10 hours ago

      by Chris Chilton

      Hertz’s latest AI damage assessment system is causing frustration among its longtime rental customers.

      The technology scans returned rental vehicles and promptly sends the driver a bill.

      One customer received a $195 charge for a dent, while another was billed $440 for a scratched wheel.

      Hertz is gaining a reputation as the "bad guy" in the rental industry, risking the loyalty of its long-term customers due to its investment in AI technology. The company’s new digital damage assessors are stringent when it comes to identifying dings and scratches, leaving many rental customers dissatisfied.

      The AI in question comes from the Israeli startup UVeye, which Hertz has begun implementing at Atlanta International Airport and plans to expand to other locations in the U.S.

      Returning rental cars pass through a tunnel equipped with lights and cameras that inspect the car's condition and note any damage. If any new issues are detected compared to the exit scan, the customer immediately receives a bill for repairs.

      One Reddit user shared their negative experience with the AI system, where the scanners detected what appears to be a very small dent on the front offside fender, leading to a $195 charge showing up on the driver’s Hertz app.

      The user, who mentioned being a Keller customer for “years,” expressed they would be choosing a different rental agency in the future.

      “I will no longer be using Hertz,” they posted on Reddit. “I contacted customer service, and they said they support the AI. There are many other car rental options available, so I’m not sticking with a company that pulls this kind of nonsense, even though I enjoyed my status.”

      The unhappy customer seems to acknowledge that the car sustained damage during their rental, as that is required for the AI to flag it. Their complaint appears to be that the damage involved a minor dent that a human assessor might not have recognized or would have opted to dismiss as normal wear and tear.

      Some rental agencies overlook damage smaller than a coin, but Hertz’s UVeye solution categorizes everything in black and white. The Drive also reported on another situation where a driver was charged $440 for a scratched wheel, which included $250 for repairs, $125 for processing, and an additional $65 for an administrative fee.

      When questioned about the new scanning policies, a Hertz representative provided this statement: “The vast 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 this with clear, detailed documentation that is presented more quickly, along with a more technology-enabled resolution process.”

      While some Reddit users commenting on the $195 dent issue could not fathom why the original poster felt so wronged, arguing that they are responsible for any damage incurred during the rental, others were shocked and stated they would reconsider renting from Hertz in the future.

      “What else are we going to be charged for? Sun damage to the paint from being parked outside?” one commenter wondered. “Perhaps AI could also assess brake pad wear or oil consumption and bill for that too.”

      It seems likely that this technology—Hertz hopes it will help mitigate its substantial losses in 2024—will become commonplace across the industry. However, rental companies may need to reassess their damage thresholds if they want to retain customers. Do you think charging $195 for a minor dent is excessive, or should the original poster just accept it and move on?