High-tech versus human contact: The new reality at Hertz

The car rental company Hertz is increasingly relying on AI systems to detect damage to returned vehicles. But what was intended as a technological innovation is causing annoyance among customers. A recent report by The Drive shows that customer communication has been reduced to a minimum and human contact has been virtually eliminated.

When the AI is in charge

Since April 2025, Hertz has been working with the Israeli company UVeye, which specializes in automated vehicle inspections. At more and more Hertz locations, rental cars go through an AI-supported scanning system when they are returned. This system uses cameras to analyze the vehicle and compare it with images taken before the rental. The aim is to detect damage quickly and accurately.

A customer of the Hertz subsidiary Thrifty experienced this system first-hand. When returning his rental car, the scanner discovered a scratch about 2.5 cm in size on the wheel rim. The bill for the repair: a hefty 440 US dollars. But that's not all, the sum was made up of several items - and they were anything but transparent.

Hidden fees and opaque costs

The actual repair of the scratch was estimated at 250 US dollars. In addition, there was a 125 US dollar processing fee and a 65 US dollar administration fee. According to Hertz, these fees cover the "cost of determining and estimating the damage" as well as "a portion of the costs incurred in processing the claim". For the customer, this meant a hefty bill with no clear overview.

In the web app, Hertz offered customers a discount of 52 US dollars if they paid the repair costs within two days. If he took a week, the discount was reduced to 32.50 US dollars. But the real problem lay elsewhere: the customer had no opportunity to speak to an employee.

No one, no solution

The customer could only write an email to customer service, with an estimated processing time of up to ten days. By then, the discounts would have long since expired. When asked, Hertz explained: "The vast majority of rentals go without incident. If a claim does occur, our goal is to improve the rental experience by making the process more transparent, more accurate and faster."

Hertz emphasizes that "digital vehicle inspections" provide "clear, detailed documentation" and include a "technology-supported solution process". By the end of the year, such AI scanners are to be put into operation at 100 of the approximately 1,600 US airport locations.

Developments at Hertz should also be viewed with skepticism

Of course, AI-based damage analysis offers advantages in terms of speed and precision. However, the lack of human contact and the opaque fee structure are a clear disadvantage for customers. Transparency and accessibility should have top priority, especially when it comes to high costs. The customer's frustration is understandable and shows that technology is not always the best solution when it replaces personal service. A balanced mix of man and machine would be the better way forward here.