Rising Concerns Over Hertz’s AI-Driven Damage Charges
In recent months, a growing number of Hertz customers have reported unexpected and seemingly exaggerated damage charges after returning rental cars. These incidents are linked to the company’s new partnership with UVeye, an artificial intelligence (AI)-powered vehicle scanning technology. The system, designed to detect vehicle damage, has sparked controversy as users claim they are being unfairly billed for issues they didn’t cause.
Nadia, a U.S. Navy Sailor, shared her experience with PasarModern.com. She rented a car from Hertz in April and returned it to Hartsfield-Jackson Airport in Atlanta after nine days. Before handing over the keys, she passed through an AI scanner as part of the return process. Hours later, she received a message from Hertz and UVeye demanding $935 — $500 for damage and $435 in fees. The system had flagged two small dents on the passenger side of the car. Nadia insists she did not cause any of the damage, stating that the car was mostly parked at her mother’s house during the rental period.
Her story is not unique. Many drivers have come forward with similar complaints about the AI scanners flagging dents, scrapes, and rim scuffs that they don’t recognize. Fees range from $130 to $935, and customers find it difficult to dispute them. Hertz announced its partnership with UVeye in April, and the technology is already being used at five locations. The company plans to expand the system to major airport-based rental spots by the end of the year.
Hertz claims the AI scanners improve driver safety, standardize assessments, and identify damage that might be missed by human inspectors, such as undercarriage wear or tire scuffs. However, independent experts warn that the system is raising broader questions about automation and consumer rights. When customers began complaining, Hertz initially described the scanners as “safety-focused.” Later, the company revised its stance, stating that fees are based on actual losses and expenses incurred due to vehicle damage.
Despite these explanations, Hertz has been slow to provide clear answers. Since July 2, PasarModern.com has asked Hertz representatives five separate times whether damage charges fund actual repairs or compensate for diminished vehicle value. The company has yet to respond to these questions. Instead, Hertz representatives have insisted that customers provide “before photos” rather than address concerns about transparency in charging.
More drivers are speaking out as the issue continues. One customer who rented from Newark Liberty International Airport shared an email thread with PasarModern.com after receiving a $416.95 bill for “cosmetic damage to the tire rim.” The driver claimed he never noticed the damage and paid the amount only because the online claims page included legal threats and no option to speak with a real person. When he requested photo documentation to share with his credit card company, the human-led damage team responded that they “do not have access” to those files.
Hertz has promised to integrate live agents into the UVeye applications to assist customers with similar issues. However, some experts argue that the lack of human oversight is concerning. Dr. Ramnath Chellappa, a digital market expert at Emory University, said it is unacceptable that a resolution with a human is not possible. He added that AI should reduce the need for human effort in assessments, potentially leading to cost savings for customers.
Collision experts are also skeptical about the accuracy of the scans. Alex Black, chief marketing officer of EpicVIN, analyzed images from one customer’s case and noted that the dent appeared to be visible only under enhanced lighting. He suggested it could be a reflection or smudge, not an actual dent. Black estimated the repair cost at $100 to $150, far less than the $285 Hertz charged the customer.
Every customer who spoke to PasarModern.com about receiving a charge has stated they will no longer use Hertz. Similar complaints have also surfaced in other major publications. The New York Times reported that a customer was charged $195 for a small dent underneath a door handle, which she believed could have been a shadow. Another driver, Patrick, told The Drive that he was charged $440 for a tire rash, a common issue when parking near curbs.
Many drivers have taken to Reddit to express their frustration. One user claimed they were charged $190 for a small dent on a Toyota Corolla. Despite these reports, UVeye has not responded to multiple requests for comment.
As the debate over AI-driven damage assessments continues, consumers are increasingly concerned about the fairness and transparency of the system. With more people sharing their experiences, the pressure on Hertz to clarify its policies and ensure fair treatment of customers is mounting.
