This Tiny Scratch Costs $440 – Thanks to Hertz’s New AI Damage Scanner

Israeli AI technology transforms rental returns into revenue generators through microscopic damage detection and automated billing systems.

Tim K Avatar
Tim K Avatar

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Image Credit: Uveye

Key Takeaways

Key Takeaways

  • Hertz’s new AI scanners charge customers for minor damage, like $440 wheel scuffs that human inspectors typically ignore.
  • The UVeye system detects damage in seconds but offers limited customer service options for disputes.
  • Over 100 AI scanning tunnels will be deployed at major US airports by year-end 2025.

That tiny wheel scuff you never noticed? Hertz’s new AI system just charged a customer $440 for a one-inch mark you probably couldn’t see without getting on your hands and knees. Welcome to the future of affordable car rental returns, where Israeli startup UVeye‘s “MRI for vehicles” spots every microscopic imperfection your eyes miss.

Airport returns now route you through tunnels packed with high-resolution cameras, sensors, and machine-learning algorithms more thorough than your Ring doorbell analyzing package deliveries. These scans complete in seconds yet catch issues human inspectors routinely overlook. Customer reports reveal hefty charges for minor damages that flesh-and-blood employees previously ignored.

Revenue pressures drive this technological shift toward microscopic damage detection. Hertz reported an $865 million loss in Q2 2024, marking its sixth consecutive losing quarter. Industry analysts estimate damage fees could generate tens of millions annually, transforming previously overlooked wear into profit centers during the company’s financial recovery.

Before-and-after scan comparisons flag any new damage for immediate billing through automated systems. Customers receive smartphone notifications within minutes of returning vehicles, with photographic evidence and payment demands. The process eliminates human judgment calls that previously gave renters the benefit of the doubt on borderline damage.

Customer service limitations compound billing frustrations for disputed charges. Chatbot systems handle damage claims without allowing live agent conversations during initial disputes. Seven-day payment deadlines pressure quick settlements before proper human review, with discounted rates expiring if customers delay while seeking assistance.

Starting at Atlanta’s Hartsfield-Jackson International Airport, UVeye installations expand to over 100 major US airports by year-end 2025. Traditional rental agencies often ignore damage smaller than coins, but AI systems operate in binary damaged-or-undamaged assessments without negotiation flexibility.

Documentation becomes your primary defense against surprise damage charges. Photograph everything yourself before driving away, because Hertz’s AI will catalog every imperfection when you return.

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