Hertz Now Uses AI To Check Rentals For Damage, And It Seems Super Sketchy

1 month ago - 25 June 2025, Carbuzz
Hertz Now Uses AI To Check Rentals For Damage, And It Seems Super Sketchy
Hertz, a name synonymous with car rental, announced in April that it would partner with artificial intelligence company UVeye on an automated vehicle inspection system to check for damages.

The system, which uses a brightly illuminated, drive-through camera, compares images of a car before pickup and after return, then assesses repair fees as appropriate to the customer via electronic means. However, one customer who rented a late-model Volkswagen Jetta described the process to The Drive, and it all seems a little fishy.

Hertz Says It Aims For Transparency
In announcing their partnership, the car rental giant and the tech company said that the AI-assisted process would increase transparency for the customer, because the vehicle damage would be plainly documented. The tech would remove the unreliable human component of a car rental – if your pickup inspector wasn't paying too close attention but the drop-off clerk is more of a hard-ass, for example – then theoretically, the technology is there to ensure the customer is being fairly treated. But in the case of The Drive reader Patrick, who rented a car from Hertz subsidiary Thrifty Car Rental at Atlanta's Hartsfield-Jackson International Airport, the actual process left the customer confused.

For most customers, the process won’t look different—but it will feel better. UVeye helps Hertz speed up the return and pickup experience while improving trust and transparency. Instead of relying on memory or notes, inspections are backed by clear visuals and data. That means fewer surprises and more confidence on both sides of the counter.
–Joint statement from UVeye and Hertz
Several minutes after dropping his rental back off, he received a notification from the rental agency that he would be charged $440 because the AI scanners had detected an inch-long scuff on one of the Jetta's 16-inch alloy wheels. The cost breakdown was $250 for the wheel itself, plus an additional $190 in administrative fees and processing. Patrick's only recourse was to discuss the claim with a chatbot, rather than an actual Hertz or Thrifty employee.

The Company Will Waive Fees If You Pay Up, Like, Now
Adding to Patrick's frustration at the $440 charge for a likely repairable scratch on the wheel, the automated Hertz damage notification included an incentive to pay for the damage within two days, waiving $52 worth of fees. If paid within seven days, the company would waive $32.50 in fees. Patrick, however, chose to reach out to the car rental agency through its form letter, and he told The Drive that a response could take up to 10 days – putting him out of the running for a discount.

Nevertheless, the extra charges themselves feel a bit on the shady side. CarBuzz reached out to Hertz for a detailed explanation of the fee schedule and didn't receive a response as of press time, but The Drive reports that the fees are intended to partially defray the cost the rental agency incurs in processing a damage claim; that money could end up in the hands of Israel-based UVeye as part of its partnership with Hertz. But if the AI-based inspection service really does improve operating efficiency on vehicle pickup and return, then it's not totally clear why Hertz needs to levy a fee in the first place.

We See A Few Holes In The Company's Policy
Furthermore, paying the damage claim immediately seemingly waives part of the adminstrative charge, which might incentivize customers to just fork over cash without really looking into the damages themselves. For example, it's impossible to tell via photo what the "scrape" on the face of the alloy wheel is – it could have been was chalk, plastic, or rubber, which are sometimes used by parking enforcement officials to determine if a car has been in a space longer than is allowed. Even if the marking was the result of accidental damage, it may have merely been paint transfer, which any half-competent vehicle detailer can make disappear in five minutes.

Finally, it's also unclear if the $250 wheel replacement charge is specific to the Volkswagen Jetta S in question or if it's a standard average fee for vehicle wheels – someone who nicks the hubcap of a Nissan Versa is SOL while someone who curbs an Escalade gets off relatively cheap. Hertz provided none of that information to Patrick, an odd move since the AI-powered service is supposed to provide so-called transparency.