Hertz Now Instantly Bills Renters $440 For Tiny Scratches Detected By New AI Damage Scanner

I’ve always loved renting cars at airports – even with all the extra fees – because the major rental car companies just haven’t worried about minor nicks and scrapes on vehicles when I return them. Hertz, Avis and National are high volume, and these locations tend to be high revenue as well. So renters tend not to get nickeled and dimed for minor damage that they probably didn’t do to the vehicle themselves.

While it’s always advisable to take photos and videos of vehicles prior to renting, the hassle over minor dings just tends not to come into play with major car rental chains at major airports. That’s changing at Hertz.

Hertz is installing UVeye inspection portals at its biggest U.S. airports this year. Atlanta was the first, but they expect to hit 100 airports before 2025 is oer.

Now they scan cars as they’re being returned – vehicles drive through a camera‑and‑sensor tunnel and get an ‘MRI for vehicles’ to log damage in a way that rental staff never did before. It also finds hard to spot damage such as under the vehicle, uneven tire wear, hairline cracks in the windshield.

Here’s how it cashed out for one renter in Atlanta.

  • There was a “1-inch scuff on the driver’s side rear wheel” of the Volkswagen he rented
  • Within minutes of the return he got a message about the damage along with a bill for $440: $250 repair cost, $125 “processing” and $65 “administrative fee.”

Hertz defines the processing fee as “the cost to detect and estimate the damage that occurred during your rental.” The admin fee, meanwhile, “covers a portion of the costs [Hertz incurs] as a result of processing your claim.”

The processing fee is supposed to cover the cost of processing, but it’s the admin fee that covers the cost of processing and the processing fee that covers the cost to “detect and estimate the damage.” You have to pay them to inspect the vehicle and decide how much to charge you.

  • They ask for payment right away

  • In this case there was a $52 discount for payment within 2 days, or a $32.50 discount for payment within a week. That strikes me as an offer you make when you’re not confident in your position.

  • Asking Hertz questions or to review the claim takes up to 10 days for a response though – so if you question the invoice, you’re stuck paying more.

According to Hertz,

The vast majority of rentals are incident-free. When damage does occur, our goal is to enhance the rental experience by bringing greater transparency, precision, and speed to the process. Digital vehicle inspections help deliver on that with clear, detailed documentation that is delivered more quickly, as well as a more technology-enabled resolution process.

The vast majority of Hertz rentals are arrest-free too, but that was little comfort to the customers who wound up in jail because the company failed to track returns properly.

Expect this to spread to other rental companies. Enterprise – known for their excruciating vehicle walkarounds (which help upsell insurance in addition to catching vehicle damage) – is piloting similar technology and Avis has discussed plans for trials.

(HT: Paul H)

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. So do you drive through the AI tunnel when you exit with the car to have a baseline?

  2. Every vehicle I rent is laden with damage (I need hand controls and they don’t install them on newer vehicles). I always documented extensively at pickup. This should be quite the experience if I ever rent with Hertz.

  3. I agree with Jim Baround…unless I have a scan indicating what was detected going out versus what was scanned coming in…I ain’t gonna pay and I will dispute the charge with my credit card company. Fartz…I mean Hertz can’t use the last scan in to prove damage on the scan going out either. Who’s to say that the damage didn’t occur under Hertz’ watch??? They are going to open a can of worms that, like some of the airlines now days, that this nickel and dime treatment will further sent them to the trash can. I know that I will notify my company of this scam!

  4. Hertz has distinguished itself as the dirtiest player in an industry that has become as dirty as any industry in the country

  5. Fly in on Frontier, rent from Hertz, and stay at Marriott. You may as well drink Drano, it would be less painful

  6. I think the headline should be “Hertz doesn’t arrest customers who return cars with minor dings and dents”

    I think we are making some progress here.

  7. This is insane — there is always wear-and-tear on car. It’s reflected in the car’s depreciation and is paid for, in part, by the standard rental rate.

    This policy is enough for me to book away from Hertz, and if it becomes commonplace in the industry, I’d follow “Thing 1” and stick with Uber.

  8. At this point, just make the “Loss Damage Waiver” upcharge part of the base rate and call it a day.

  9. Did I miss the part where the cars are scanned while leaving the facility, then a comparison is done when they are returned? If not, renters could billed for the same minor issue over and over and over…

  10. Yeah, sure, this will play out well, considering during my last rental return to Hertz at BOS a couple of employees were running a side hustle offering curbside drop off “service” at the Terminal of your choice…in the car you had already “returned”…

  11. The good news is two years ago I rented a car from Hertz while visiting a forested area in NorCal. A deer leaped in front of the vehicle about 2 hours into the trip, which caused about $2,500 damage to the car a lifetime worth of damage to the deer. Hertz sent me a bill for the damages, and I told them my insurance would cover it; the Hertz rep was annoyed and told me to get reimbursed through my insurance. After reiterating this would go through my insurance – and paid in full – Hertz banned me from renting cars from them and their affiliates. Just saved myself a scan!

  12. This is bad in multiple ways.
    A certain level of wear and tear is expected.
    How perfected is this machine doing the scanning?
    Will they scan you immediately on the way out?
    Will this only be at airport locations?
    Hertz has truly worked their way to the bottom in relation to service and customer treatment; although admittedly, I have had a few very good interactions with AUS employees.
    My worst Hertz interaction of all time was being held captive on STL.
    The supervisor was serious, and held us for over an hour because we were trying to let him know the vehicle that we rented at AUS had a mechanical problem.
    I had receipts, and credit card charges, but this dude was not letting up.
    It was the worst experience I have had with them.
    Last but not least, this is going to absolutely affect credit card coverages the most, and crazy enough, I think they sort of know that.
    This seems like a money grab coming and going.

  13. From a technological standpoint I was excited (definitely not from a consumer standpoint) when I saw MRI since I thought there was some fancy new non ionizing radiation technology involved but it seems like it’s just ultra high-def images and some post imaging analysis. Big whoop!

  14. Whoa.

    $440 for a one inch scratch they likely will not repair? That is a racket.

    The default rule for property damage is that the owner gets diminution in value, reasonable wear and tear excepted. I would not be surprised if, deep in the contract (of adhesion), something supersedes this default rule. But at $440 a pop, Hertz might make good cash for damages they never get around to repairing.

  15. Hertz is a criminal enterprise with a car rental agency attached – enabled by complicated arbitration provisions that make it difficult or impossible to challenge them in court.

  16. @McGee – no rental company I’m aware of wants to deal with insurance. They all say pay to fix it and file a claim to be reimbursed. You would probably be banned from other companies (or face a lawsuit) under similar circumstances

  17. Gary
    Please start a campaign with other writers of advice columns DO NOT RENT FROM HERTZ

  18. Stopped renting from Hertz about 5 years ago due to incredibly bad Customer Service and false charges that I kept having to dispute. They have become the worst Car Rental Company in the Country.

  19. Hertz once tried to charge me for damage that was not logged when I returned the car – days later they sent me pics of tons more scuffs and I spent years fighting them. I will NEVER EVER rent from them again.

  20. I rented a car from Hertz in Phoenix last week. It was scanned at the exit and again when I returned.

  21. Hertz is now one of the most overtly customer hostile companies in the world of leisure/business travel. Nobody should be doing business with them ever and it’s surprising that all the negative press hasn’t impacted their market share…

  22. If they want to do this, then I want to drive through on the way out for a verified baseline.

  23. Anyone willing to defend Hertz so we can dunk on you? Oh lala.. ‘Presidents Circle’… upgrades (if available), dedicated customer service line. So fancy!

  24. Stopped renting from Hertz after they let someone drive a car that was checked out to me (they let them out of the gate without verifying ID) around Dallas for a week then billed me for it and refused to discuss. Amex gave me my money back and I filed a police report, and DFW Airport police went over to Hertz threatening to arrest someone there for abetting theft and fraud and said they’d put out a warrant for the person who drove the car.

    What if I take some of those stickers of fake bullet holes and put them on the car, then drive out? Then remove before returning? I wonder what the AI logic does in that case.

  25. As with other comments, this will definitely turn me off of Hertz but sadly I see it spreading. I’d definitely want to have a comparison scan immediately as I leave.

    “Uneven tire wear”? That can be from various reasons, including many that stem from maintenance issues that are the owner’s responsibility, not the renter.

    How well does this technology distinguish things like bird poop, bugs on the bumper, dried mud, etc. that aren’t actual damage? What calibrations are required and will Hertz provide proof that it the scanner was properly maintained and calibrated?

    AI is going to turn out to be one of the worst things for consumers, isn’t it? I mean even aside from the eventual Skynet killer robots.

    I’m not one for over-regulation, but this sort of thing seems like something well suited for some common sense consumer protections.

  26. @1990 — Hertz donut? (Family Guy)

    @NedsKid — Ha! Please try and let us know, for science.

    @Ryan — Yep, my questions too. Wonder if it can tell chihuahuas and blueberry muffins apart…

  27. This certainly looks like trouble…and a windfall for car rental companies at our expense. Does anyone think Hertz is going to “repair” the damage in the photograph? Hardly! And they’re certainly not going to replace that wheel, either. Ka-ching! Hertz pockets an additional $440. Rip-off!

  28. Will the rental insurance from my credit card cover this damage or has Hertz found a work around here? The second this scanner pops in to where I regularly rent cars I will no longer use Hertz.

    Minor scratches and things like that are the cost of doing business for a rental car company. Given how dirty and lousy their cars are I should be charging them. Next they will charge for cleaning.

  29. A scan taken exiting the car rental lot should be sent immediately to the customer for comparison upon return. Upon return, the results of the “after” scan should be available before the customer leaves the car rental lot so that any extra charges can be discussed. If the vehicle was damaged while in my possession, I or my insurance will cover what is needed. I probably won’t be happy but I have done that before (extra charge on the credit card for a very small ding in the front windshield that they could drill and fill.)

  30. I like hertz at most locations, then again I have a premium service with them. I was scanned by one of these devices in Nashville last week, I asked if I would get a preliminary report and I was told no. At a minimum they need to provide that, when I rent in Zurich they send me an email but I am not scanned it is all manual and they review the damages. The good news I guess I did not get charged when I returned the car which did have significant blemishes which I personally recorded. The car was also an awful it was a Genesis 70. If I get one of those in the future I will ask for a change..

  31. This isn’t about real damage, this is about any hit or bump to the car that “Doesn’t” show up or result is actual chargeable damage as defined by any reasonable person.

  32. Hertz in Europe sends me damage report before the car is rented or sends me something noting all dings, scratches etc by email.
    If the car is returned at ANY HERTZ location in the US or abroad and goes through this tunnel camera – then I want it to exit the lot when I rent it too and have the ability to compare on my return.

    HERTZ staff walk around the vehicle and may not see what the AI camera sees – so if the staff misses something at the beginning of the rental – I don’t want to be blamed for it when I return.

    PROOF ! I need Proof.

    And how is that going to work with Ultimate Choice Cars – we choose the vehicle when we pick up the car .

    See LOTS of problems here

    These tunnels will probably find themselves at large airport locations not the Hertz Local edition locations

  33. remember that Hertz owns and operates other brands. The same thing will happen at those other brands if it isn’t happening already

  34. @ Gary — This will just push people to uber/lyft. Why rent a car at all? Things will get even better with Waymo becuase any damage can’t posibly be blamed on the passegner, although I don’t doubt those scammers will find a way to ripoff customers, too. Maybe the public train/bus will become the best option.

  35. If you look at the picture of the wheel and the contrast in the photo where the scratch is and the brightness at about 1-2 o’clock position, that scratch could have easily been missed if the tire was about 180 degrees around when it was photographed leaving the lot. Dont rent the car unless you get before pictures.

  36. @Gary – You’d be doing readers a great service if you would write a post about how to combat this practice, what to say in a chargeback, and what credit card insurance – if any – is the best about protecting us. Undercarriage damage? Really? This is frightening stuff.

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