Hertz Customers Face Frustration Over AI-Generated Charges for Minor Vehicle Damage
Hertz customers are increasingly expressing frustration over unexpected charges for minor vehicle damage detected by the company’s new artificial intelligence-powered scanning system. Many of these charges have led to significant financial burdens, with some customers being billed hundreds of dollars for small dents or scratches that they claim were not present when they rented the car.
Patrick, a customer who rented a Volkswagen from Thrifty — a Hertz-owned brand — at an Atlanta airport location, shared his experience with The Drive. He was surprised to receive a bill just minutes after returning the car. The charge amounted to $440 for what he described as a one-inch scuff on a wheel. This fee included $250 for repairs, $125 for processing, and $65 for administrative costs.
Upon logging into the Hertz web app, Patrick was shown photographic evidence of the damage flagged by UVeye scanners. He was given the option to receive a discount if he paid within two days ($52 off) or a week ($32.50 off). However, Patrick chose not to accept the offer, stating that saving $30 wasn’t worth admitting fault for something he believed wasn’t his responsibility.
When Patrick tried to contact a live customer service representative, he found the process challenging. According to him, customers are directed to a web portal where they can view before-and-after photos captured by the scanners. However, if they have concerns, their options are limited. A chatbot is available to flag issues for review, but there is no option to speak directly with a human agent.
Emailing support is another option, though responses can take up to 10 days — often after the early-payment discount has expired. This delay has left many customers feeling frustrated and powerless.
A Reddit user, posting under the handle professor_pimpcain, shared a similar experience. After returning a car to Hertz’s Atlanta location, they received a $195 bill for a “ding.” They expressed their dissatisfaction, stating they would no longer use Hertz and that customer service stood by the AI system.
Many complaints focus on the lack of transparency in how fees are calculated. While Hertz claims that the processing fee covers “the cost to detect and estimate the damage” and the administrative fee covers a portion of the costs incurred from processing a claim, these explanations have been met with skepticism. Customers argue that the system lacks real-time opportunities to dispute charges, leading to feelings of unfairness.
In response to these concerns, Hertz issued a statement to The Post, defending the system. They emphasized that the majority of rentals are incident-free and that the goal is to enhance the rental experience through greater transparency, precision, and speed. However, some customers believe the AI system is designed more to maximize revenue than to ensure fairness.
The technology’s ability to instantly generate fees without human interaction and with a short window for discounts has created a sense of pressure rather than transparency. One Reddit user responded to professor_pimpcain’s post with: “Wow that’s insane! Never using Hertz ever again.”
Earlier this year, Hertz announced a partnership with UVeye, an Israel-based firm specializing in rapid, automated car inspections. These systems, described as an “MRI for vehicles,” scan cars in seconds, detecting damage such as dents, scrapes, and cracked glass both before and after a rental.
By the end of the year, Hertz plans to have over 100 UVeye scanners operating at U.S. airport locations. Although Hertz is the only major rental company using the system extensively, UVeye’s technology is already well-established in other automotive sectors, with clients including General Motors, Hyundai, Amazon, and CarMax.
UVeye’s inspection systems are used at hundreds of dealerships, fleet locations, and vehicle auctions worldwide. The company has also worked with GM and Connexion Mobility to inspect cars at dealerships during service appointments, though not in traditional rental contexts.
UVeye is reportedly in talks with additional rental agencies, suggesting broader adoption may be on the horizon.
Hertz has faced controversy in the past, including billing electric vehicle renters for gasoline due to a “systems error” and charging one customer $10,000 for mileage on an “unlimited-mile” rental. In 2022, five customers sued Hertz after being wrongfully arrested for allegedly stealing cars they had returned.
The Post has sought comment from UVeye.
