Not missing a thing: Hertz’s AI scanners catch 5X more car damage, surprising customers

Hertz has deployed AI-powered vehicle scanning technology at six U.S. airports to automatically detect damage on rental cars, using thousands of high-resolution images to identify even minor scratches and dents. The system, developed by UVeye, is catching damage that manual inspections miss and billing customers for repairs they may not have noticed, leading to unexpected charges and customer complaints.

How it works: The UVeye scanning system captures thousands of high-resolution images from all angles as vehicles pass through rental lot gates during pickup and return.

• Artificial intelligence compares the images and flags any discrepancies between the vehicle’s condition at pickup versus return
• The system automatically generates and sends damage reports to customers
• An employee reviews reports only if customers dispute charges after receiving bills
• UVeye claims its technology can “detect 5X more damage than manual checks” and generate “6X higher total value of damage captured”

Where it’s deployed: Hertz currently uses the AI scanners at six major U.S. airports, with plans for broader expansion.

• The technology debuted at Hartsfield-Jackson Atlanta International Airport last fall
• It’s now operational at Newark Liberty, Charlotte Douglas, Phoenix Sky Harbor, Tampa International, and George Bush Intercontinental airports
• Hertz plans to expand to other “major airport locations” this year but hasn’t specified which ones

Customer experience concerns: Renters are receiving unexpected bills for damage they can’t see or didn’t cause, sparking disputes over charges.

• Kelly Rogers and her husband were charged $195 for a dent detected by AI after they had already passed through airport security—$80 for damage plus $115 in processing fees
• The couple said neither they nor a Hertz employee spotted any damage during their manual inspection
• Rogers described the detected damage as potentially “a shadow,” calling the charge “bananas”
• Hertz offered to reduce their charge to $130 if paid within one day

Industry adoption: Other major rental companies are taking different approaches to AI-assisted damage detection.

• Sixt uses a different AI tool called Car Gate with “built-in sensors, cameras and a lighting system”
• Enterprise Mobility, which owns Enterprise, National, and Alamo, doesn’t use AI in its damage review process
• Avis Budget Group tested AI damage scanning as early as 2019 but says its process “remains human-led”

What they’re saying: Hertz defends the technology as improving accuracy and transparency in damage detection.

• “The scanners make sure customers are not charged for damage that didn’t occur during their rental, while bringing greater transparency, precision and speed to the process,” said Emily Spencer, Hertz spokesperson
• Yaron Saghiv, UVeye’s chief marketing officer, said the technology “removes the need for manual walkarounds, increases vehicle safety, and ensures a reliable, objective record of vehicle condition”
• Spencer noted that fewer than 3% of vehicles scanned show any billable damage

The bottom line: While AI scanning promises more accurate damage detection, the technology is creating friction with customers who face unexpected charges for barely visible damage that traditional inspections would miss.