Rental car giant Hertz is facing growing criticism over its use of artificial intelligence-powered scanners that detect minor vehicle damage and automatically charge customers hundreds of dollars for repairs. The technology, which has been rolled out at airport locations, is catching scratches and dents so small they would typically go unnoticed by human inspectors.
Adam Foley learned this the hard way when he returned his Hertz rental car and received a damage notification just hours later.
The AI Scanners of Hertz Spot “Invisible” Damage, Leading to Hefty Fees for Customers
The AI system had identified two tiny dents one on the roof and another on the driver’s side front fender. The fender damage, which Foley shared on LinkedIn, appeared smaller than a dime and barely visible to the naked eye.
Despite the minimal nature of the damage, Hertz charged Foley a total of $350. This included $80 for each dent plus an additional $190 in processing and administration fees. The company offered to reduce the charge by $65 if he paid immediately, a common practice designed to secure quick payment before customers can properly contest the charges.
This incident follows a similar case from Atlanta, where another customer was charged $440 for a small scratch on a wheel. Both cases highlight a troubling pattern emerging from Hertz’s partnership with UVeye, the Israeli company that manufactures and operates these high-tech scanning systems.
The AI scanners use advanced imaging technology to detect damage that would easily slip past human inspectors. While this might sound like improved accuracy, customers are discovering that the system catches every minor imperfection – the kind of wear and tear that naturally occurs when vehicles are passed between hundreds of drivers each month.
How Hertz’s Damage Detection System Fails Customers
What makes the situation particularly frustrating for customers is the difficulty in challenging these charges. Foley described his experience trying to dispute the fees as “an automated AI chat experience that does not break to go to a human interaction no matter what choices you make.”
Instead of being able to discuss the charges through Hertz’s web portal, customers must navigate a separate support line that the company doesn’t clearly advertise.
The irony is that many customers might actually welcome AI-powered inspections if implemented more reasonably. Several readers have noted that quick damage assessment with visual evidence could bring welcome transparency to the rental process, eliminating the opacity that often leads to time-consuming disputes at return counters.
Hertz seems to recognize this potential. When contacted about the controversy, a company spokesperson emphasized that “the vast majority of rentals are incident-free” and claimed the goal is to “enhance the rental experience by bringing greater transparency, precision, and speed to the process.”
However, the real issue isn’t the technology itself – it’s how Hertz is using it. The system is catching damage so minor that it wouldn’t bother the next customer and certainly wouldn’t prompt the average car owner to seek repairs. These tiny dings could result from highway gravel, careless door-opening in parking lots, or countless other everyday occurrences.
AI Damage Scanners of Hertz Spark Customer Backlash Over “Extortive” Charges
Foley believes the problem stems from Hertz’s need to justify the expensive AI technology investment. “I suspect the math of investing in such expensive technology indicated they needed to go to extortive levels to get a [return on investment],” he wrote on LinkedIn.
The business model appears straightforward: the AI scanners don’t need to make rentals more expensive upfront. Instead, they simply need to find something – anything – to charge for, regardless of whether Hertz actually repairs the damage afterward.
This approach has left customers like Foley vowing to avoid Hertz until the policy changes. “I want to be clear that I think this use of AI is kind of compelling,” he noted, but added that the focus on “negligible damages” through a “human-less system” doesn’t make sense.
As more stories emerge, Hertz faces a growing public relations challenge. While AI technology could genuinely improve the rental experience, the current implementation appears designed more to generate revenue than to serve customers fairly. The company may need to reconsider its approach before the backlash affects its bottom line more significantly than any minor dent repair costs.
