AI is changing the rental car return experience – and it could cost you

Returning a rental car is already a bit of a stressful experience, but it might be getting a little more stressful soon — you can thank AI for that. Over the past several months, people renting vehicles from Hertz noticed a new step in the return process — a drive through a giant, glowing archway.

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It turns out that Hertz is employing a new AI-powered system called UVeye (from an Israeli startup that started out doing border security and military vehicle inspections). Instead of a human inspecting for damage when you return a vehicle, this new system scans the car in an instant. It takes thousands of pictures from all angles when you take the car, including the body, glass, tires, and undercarriage, and does the same when you get back, and compares the pictures to see if anything is different. If it detects any damage, it creates a report and sends the details to you, sometimes within minutes of your dropoff.

This system is already in place at six major airports (Atlanta, Charlotte, Newark, Phoenix, Tampa, and Houston), and Hertz plans to implement it in nearly 100 more by year’s end. Hertz isn’t alone; Sixt, a budget-focused car rental company, utilizes a similar product. 

There are a few problems with this setup, though, and customers aren’t happy.

Damage you wouldn’t usually see

First, the system apparently detects any damage, even the most minuscule of scratches — UVeye says its scanners produce “5X increase in damage detection.” It’s fair if a rental company asks you to cover damage you did to a vehicle, but some drivers are getting lofty bills for minimal incidents. One was hit with $250 for a repair, $125 for a processing fee, and $65 for an administrative fee; another driver shared a similar experience on LinkedIn, as have other users on Reddit.

Even if you drive your rental very carefully, normal road wear can happen. These AI scanners are apparently catching the slightest damage that a human eye would normally miss. 

In addition to a damage charge, users experiencing Hertz’s new system also owed a processing fee and an administrative fee; it’s not clear if those charges were also applied under the old human inspection method. (I’ve reached out to Hertz to find out.)

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If you do have a question about alleged damage, it’s nearly impossible to talk to a human. An AI chatbot handles customer service for the process, and the only time you’re able to interact with a human is if you officially file a dispute. According to TheDrive, the driver mentioned above wanted to inquire about the charge, but couldn’t find a human to talk to. 

Hertz says its AI assessments are consistent in “frequency, accuracy, and efficiency” and that the system is intended to pass responsibility for damages to the person directly involved rather than spreading it out to everyone over the cost of rentals. Complaints, however, are so prevalent that one law firm has launched an investigation.

What to do when renting a car 

The new AI inspection system may make things faster and uncover more damage, but it means customers will be paying more. Whether or not that’s ultimately fair depends on which side of the claim you’re on.

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If you’re renting a car, you should always take time-stamped photos and videos when you pick it up and drop it off. Include both close-ups and wide shots. 

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