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Hertz’s Controversial AI Rental-Car Damage Scanner Can Add Fees to Drivers’ Bills

By TheFinanceBase Team10 min read
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Hertz’s AI damage scanner does not independently decide that a renter owes a specific amount. The system, developed with UVeye and marketed by Hertz as Digital Vehicle Inspection (DVI), compares vehicle images taken before and after a rental. Hertz can then use an apparent change as part of a damage claim that may include repair costs, administrative or processing fees, and other charges allowed under the rental agreement.

The controversy is about what happens after the scan: whether a mark was new, whether it exceeded normal wear, whether the renter caused it, whether a person reviewed the evidence, and whether the resulting bill is proportionate and clearly itemized.

What Hertz’s AI scanner does

Hertz announced its partnership with UVeye on April 16, 2025. The company said the first announced installation was at Hartsfield-Jackson Atlanta International Airport, with planned expansion to major U.S. airport locations by the end of 2025. Hertz’s announcement describes the technology as an automated inspection system intended to make vehicle-condition records faster and more consistent.

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Hertz’s DVI support information says inspections may use a drive-through scanner or a mobile device. The process can examine exterior areas such as body panels, wheels, glass, tires, and potentially underbody components. A scan at pickup can be compared with one at return to identify apparent changes.

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That distinction matters. A computer-vision system can identify a difference between two images. It does not, by itself, prove that:

  • the mark was caused during a particular rental;
  • the renter caused it;
  • the condition was not already present or inadequately recorded;
  • the mark exceeds Hertz’s normal-wear standard; or
  • the amount billed is a reasonable reflection of the loss.

The scanner is therefore best understood as an inspection and evidence-gathering tool that can feed into Hertz’s existing damage and billing process—not as an AI system that autonomously sets a final price.

How a scan can become a damage bill

The likely sequence is straightforward, although the public record does not answer every question about Hertz’s internal workflow:

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  1. The vehicle is scanned or photographed at pickup and return.
  2. Software compares the condition images.
  3. The system identifies an apparent new mark or change.
  4. Hertz determines whether the condition is billable under the rental agreement and its damage standards.
  5. Hertz calculates repair-related and other permitted charges.
  6. The renter receives a post-rental notice and may be asked to pay or appeal.

Hertz’s damage FAQ and protection information state that damage responsibility can involve more than the repair itself. Depending on the agreement and circumstances, a claim may include a Damage Administration Fee or other administrative costs, loss of use, towing, storage, diminished value, taxes, and related expenses.

Those contractual provisions existed before the AI rollout. The scanner did not necessarily create the fees. Its significance is that automation may make it easier to identify and document small marks, potentially increasing the number of conditions that enter the billing process.

Why renters are disputing the charges

Reported complaints focus on small or allegedly pre-existing marks producing bills that are much larger than the apparent repair cost. The examples below are allegations described in congressional correspondence, not court findings or proof that every charge was erroneous.

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A reported $440 wheel-scuff charge

Sen. Richard Blumenthal’s August 2025 letter to Hertz described a renter who reportedly received a $440 charge connected to an approximately one-inch wheel scuff. The letter questioned the size and composition of the bill, including the portion attributed to fees. Blumenthal’s release summarizes the complaint and his questions to Hertz.

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A reported $195 dent charge

The same congressional inquiry described another renter who reportedly received a $195 charge for a dent even though the renter and a Hertz employee allegedly found no damage during a visual inspection. The letter said the stated repair cost was $80 and that the remaining $115 consisted of fees. The account appears in Blumenthal’s letter.

These cases raise several different questions that should not be collapsed into the phrase “AI overcharge.” A renter might dispute the existence of the damage, whether it was new, whether it was caused by the renter, whether it was beyond normal wear, the repair estimate, or the legality and proportionality of additional fees. Each is a separate issue.

Hertz’s response and the meaning of the 97% figure

Hertz has emphasized potential benefits of DVI, including faster inspections, more consistent records, and better documentation of a vehicle’s condition. The company also told CBS News that more than 675,000 rentals had been scanned and that more than 97% showed no billable damage. CBS News reported the figure.

That statistic is relevant, but it is not an accuracy audit. It does not tell readers:

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  • how many scans produced a false positive;
  • how many claims were reduced or withdrawn after appeal;
  • the average or median bill;
  • how many claims involved pre-existing damage;
  • how often employees disagreed with the system;
  • how the results varied by airport, vehicle type, weather, or lighting; or
  • whether the 97% figure covers a clearly defined period and population.

In other words, “97% had no billable damage” describes the share of rentals that did not produce a billable finding, according to Hertz. It does not mean the scanner was 97% accurate, and it does not establish that the remaining claims were fair.

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The unresolved human-review question

Whether a person must review an AI-identified condition before Hertz bills a renter is one of the central unresolved issues.

A House Oversight inquiry led by Rep. Nancy Mace said other rental companies reportedly use AI as an inspection aid while requiring human staff to review flagged damage before billing. The inquiry raised concern that Hertz might issue assessments without comparable human review and requested clarification. That is an oversight allegation, not a final regulatory or judicial finding.

Blumenthal’s letter also questioned whether Hertz’s process remained human-led. It described a chatbot-based appeal process that could flag a case for later review rather than immediately connecting the renter with a live representative.

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A fair system should make the following information clear:

  • Does every AI flag receive human review before a bill is issued?
  • Can an employee override or correct the scanner?
  • Does the renter receive comparable before-and-after images?
  • Who decides whether a mark exceeds normal wear?
  • Is the price based on an actual repair estimate, a fixed schedule, or another formula?
  • Can the renter speak with a person before an early-payment deadline expires?

The public sources available for this article do not resolve all of those questions. Nor do they establish that Hertz has eliminated human inspections nationwide.

Where the system was deployed

Atlanta was Hertz’s first announced UVeye location. By August 2025, congressional correspondence said the technology was reportedly operating at at least six U.S. airports, and Hertz and lawmakers referred to plans for expansion to approximately 100 airport locations by the end of 2025.

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That was a rollout target, not proof that the target was completed. The public sources reviewed here do not provide a verified, current list of every U.S. location operating DVI as of September 2026. Travelers should ask their specific branch whether it uses Digital Vehicle Inspection, because deployment may vary by airport and location.

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Why automated detection does not prove responsibility

Before-and-after image comparison can strengthen a vehicle-condition record, but it cannot answer every liability question. A vehicle may have been photographed under different lighting or weather conditions. Water, dirt, reflections, shadows, camera angles, and incomplete captures can affect comparisons.

Other edge cases include:

  • Pre-existing damage: A mark may have been present but omitted from the original record.
  • Wheel and tire damage: Curb rash can be difficult to notice during a hurried walk-around but visible to a scanner.
  • Underbody damage: Renters generally cannot inspect the underside of a vehicle as thoroughly as an automated system.
  • Vehicle swaps: Pickup and return records must be matched to the correct vehicle and rental agreement.
  • Incomplete scans: A vehicle may not be positioned correctly, or one area may not be captured.
  • Employee disagreement: A staff member may see no billable damage while software identifies an apparent change.
  • Delayed notice: A claim may arrive after the renter has left the airport and returned home.

The most important test is not simply whether the technology can see a tiny mark. It is whether Hertz can show that the condition was new, attributable to the rental, beyond normal wear, and billed under a transparent and proportionate standard.

What lawmakers asked Hertz to disclose

The House Oversight inquiry requested information about Hertz’s use and planned expansion of the scanners, consumer benefits, human review, damage-charge calculations, fairness safeguards, and implications for federal employees and agencies renting vehicles for official business. See the House Oversight letter.

Blumenthal requested additional information about:

  • locations using the technology;
  • AI and employee accuracy rates;
  • how fees are calculated;
  • the internal review and appeal process;
  • the number of AI-generated claims;
  • appeal outcomes; and
  • claims contradicted by an employee’s visual inspection.

The inquiries show that lawmakers are seeking data needed to distinguish isolated disputes from a broader pattern. A congressional request, however, is not itself a finding that Hertz violated the law or systematically overcharged customers.

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How to protect yourself when renting from Hertz

Before driving away

  1. Ask whether DVI or UVeye is used at the location. Hertz says inspections may use a drive-through scanner or mobile device.
  2. Photograph and video the whole vehicle. Include all four sides, bumpers, lower panels, wheels, tires, windshield, other glass, roof, interior, odometer, and fuel level.
  3. Capture existing marks clearly. Photograph scuffs, dents, paint transfer, cracks, curb rash, missing trim, and stains from several angles.
  4. Use original, timestamped files. Keep unedited files and back them up. Avoid relying only on screenshots or compressed social-media uploads.
  5. Get pre-existing damage into the rental record. A verbal assurance is weaker than a written inspection record or email.
  6. Read the protection terms. Loss Damage Waiver may shift some or all responsibility to Hertz, but exclusions and agreement violations can limit protection. Review Hertz’s U.S. terms.

At return

  1. Take another set of photographs and video in good light.
  2. Record the odometer, fuel level, return location, and exact return time.
  3. If permitted, photograph the return lane or scanner area.
  4. Ask for a return receipt or written confirmation.
  5. Save every email, text message, inspection report, and payment notice.

If Hertz sends a damage bill

Do not simply ignore the notice. Submit a documented dispute through the formal contact or appeal channel identified on the claim. Ask Hertz for:

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  • the pre-rental and post-rental scans;
  • images showing the alleged damage;
  • timestamps for both inspections;
  • the vehicle’s prior damage and rental history;
  • the basis for concluding the damage occurred during your rental;
  • the repair estimate or invoice;
  • a line-item explanation of administration, processing, loss-of-use, storage, towing, diminished-value, tax, and other charges; and
  • the applicable normal-wear standard.

Keep proof that you submitted the dispute. If an early-payment discount or deadline is approaching, explain in writing that the charge is disputed and ask whether collection activity, added fees, or the deadline can be paused while Hertz reviews it. Do not assume Hertz must pause the bill; that depends on the rental agreement, applicable law, and the claim’s status.

If your credit card or personal auto insurer may provide coverage, notify it promptly. Coverage may apply to physical damage while excluding administrative fees, loss of use, diminished value, certain vehicle classes, or other costs. Check the actual policy and benefits guide rather than assuming every part of the Hertz bill is covered.

What Hertz should publish

Renters and policymakers need more than the number of rentals that produced no billable damage. Meaningful transparency would include:

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  • location-by-location deployment;
  • total scans, flags, and claims;
  • false-positive and reversal rates;
  • the percentage of claims reviewed by a human before billing;
  • average and median claim amounts;
  • the average ratio of fees to repair costs;
  • appeal success and reduction rates;
  • the number of claims contradicted by employee inspections;
  • how often early-payment discounts expire before a dispute is reviewed; and
  • information about image retention, system calibration, confidence thresholds, and audit procedures.

Those figures would help answer whether DVI is improving documentation, merely increasing claim volume, or creating a process in which automated detection is easier than meaningful dispute resolution.

The bottom line for renters

Hertz’s AI inspection technology is not inherently unfair. Faster, consistent before-and-after records could help resolve disputes when the images are reliable and the standards are clear. But detecting a difference is not the same as proving fault, and a technically accurate detection can still lead to an unfair outcome if the charge is disproportionate, poorly itemized, or difficult to appeal.

The public record supports scrutiny of Hertz’s human-review practices, fee calculations, disclosure, and claims data. It does not establish that every AI-generated claim is false, that Hertz intentionally overcharges renters, or that the system is illegal. Until Hertz provides fuller data, the safest response is practical: document the vehicle thoroughly, preserve the rental record, and challenge any unexplained or unsupported bill in writing.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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