Hertz AI vehicle inspections, one of the world’s largest car rental companies, has begun deploying artificial intelligence (AI) scanners to inspect vehicles for damage upon return—a move that has ignited significant backlash from customers who say the technology is leading to unfair and excessive charges for minor or questionable damage. The controversy centers around the experience of a renter at Hartsfield-Jackson Atlanta International Airport, who was charged $440 for a one-inch scuff on a tire detected by the AI system, with little opportunity to dispute the charge or speak to a human representative.
How Hertz’s AI Inspection System Works
In April 2025, Hertz announced a partnership with UVeye, an Israeli technology company, to “transform its vehicle maintenance process” by introducing advanced AI-driven inspection technology across its U.S. operations. The system uses high-resolution cameras and machine learning algorithms to perform real-time, automated inspections of a vehicle’s body, glass, tires, and undercarriage. Vehicles are scanned both before and after rentals, allowing the company to compare images and identify any new damage.
The rollout began at the Atlanta airport and is expected to expand to 100 major U.S. airport locations by the end of the year. Hertz claims this technology will improve the frequency, accuracy, and efficiency of inspections, reduce disputes, and increase transparency for customers.
The $440 Scuff: A Case Study in Customer Frustration
The incident that brought national attention to Hertz’s new system involved a customer returning a Thrifty rental (a Hertz subsidiary) at Atlanta’s airport. Minutes after dropping off the vehicle, the renter received a notification via the Hertz app: the AI scanner had detected a one-inch scuff on the driver’s side rear wheel.
The $440 Breakdown:
- $250 for repair
- $125 for processing
- $65 administrative fee
The renter was offered a $52 discount if he paid within two days or a $32.50 discount if paid within a week—but he was unable to speak to a human about the charge. Instead, he was directed to a chatbot with limited options and had to use a “contact us” link, waiting ten days for a response. The customer told The Drive that he did not intend to pay quickly just to get the discount, expressing frustration at the lack of human interaction and transparency.
A Broader Pattern: Customer Backlash and Social Media Outcry
This case is not isolated. Numerous Hertz customers have reported similar experiences, with hundreds of dollars in charges for minor blemishes or damage they believe did not occur during their rental. Complaints have flooded Reddit, Facebook, and other platforms, with renters alleging that the AI system flags insignificant issues—sometimes even dirt that could be wiped off—as costly damage.
- One Reddit user was charged $195 for a small ding on a tire.
- Another claimed the AI system couldn’t distinguish between actual damage and minor scuff marks.
- The inability to escalate to a live agent quickly has led to calls for boycotts of Hertz and its subsidiaries.
Hertz’s Response and Rationale
Hertz maintains that over 97% of rentals are incident-free and says the AI system is meant to benefit customers by:
- Providing clear, photographic documentation
- Preventing charges for pre-existing damage
- Expediting the claims process
According to Hertz, when a customer flags an issue through the app’s chat system, a live agent reviews the case and communicates the determination via the AI agent. The company says it is working to integrate live agents more directly into the app to improve customer support.
In the case of the $440 scuff, a Hertz spokesperson said a live agent had manually reviewed the before-and-after photos and confirmed the damage was new.
Expert Perspective: Policy vs. Technology
Experts in artificial intelligence and business operations caution that the issue may not lie with the technology itself, but with how Hertz has implemented it.
Ramnath Chellappa, a professor at Emory University’s Goizueta Business School, noted:
“This is clearly a case of whether the firm in question has the right policy in terms of what it is going to do with the results from the AI rather than the AI itself.”
The key issue isn’t detection—it’s the thresholds for charging customers and the lack of human interaction when disputes arise.
Transparency and Fairness Concerns
Despite Hertz’s assurances, concerns remain:
- No published list of typical damage fees
- Unclear if charges vary between AI-equipped vs. manual locations
- Lack of upfront transparency and limited dispute resolution options
These gaps have left customers feeling uneasy and mistrustful of the process.
The Future of AI in Car Rentals
Hertz’s deployment of AI vehicle inspections is part of a broader automation trend in the car rental industry. While the technology has the potential to reduce fraud, speed up inspections, and lower human error, the backlash highlights the need for:
- Fair policies
- Human customer support
- Transparency on repair thresholds and charges
As more rental companies adopt AI tools, how they handle customer service and dispute resolution will define whether this technology improves trust—or damages it further.
Summary: What Renters Need to Know in 2025
| Area | Concern |
|---|---|
| AI Damage Detection | Extremely sensitive, sometimes flags minor issues |
| Fee Structure | Often includes high repair, processing & admin fees |
| Dispute Process | Limited live support, long wait times |
| Customer Sentiment | Growing frustration & mistrust online |
| Expert Opinion | The policy, not the AI, is the root issue |
Final Thoughts
The Hertz AI vehicle inspections controversy in 2025 shows how technology without transparency and empathy can lead to backlash. For AI to truly improve customer experience, fair damage policies, human escalation options, and clear communication must accompany the automation.
As this system expands across U.S. airports, Hertz—and the industry—will need to adapt quickly to address growing concerns and restore customer confidence.
References
The Drive – “Hertz AI Car Rental Inspection Charges Man $440 for Scuffed Wheel”
➤ This article provided the original case study from Atlanta and insight into the $440 charge breakdown and renter experience.
UVeye & Hertz Partnership Press Release (April 2025)
➤ Details on how the AI vehicle scanning technology works, what it inspects, and Hertz’s goals for automation.
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