A couple of months ago, I wrote about how Hertz is rolling out new AI technology to detect vehicle damage. The idea is that Hertz is installing a bunch of cameras when cars are picked up and returned, which will instantly spot any damage, and then bill renters for it.
In theory, there’s nothing wrong with this — it’s a more accurate system than the previous manual inspection used for determining the condition of vehicles. As you’d expect, though, Hertz is investing in this technology not to make the rental experience more pleasant, but instead, to make it way worse.
In this post:
Hertz is screwing over customers with new AI technology
The Drive has the story of a firsthand experience that someone had with Hertz’s new AI damage system. Specifically, this involved a Volkswagen rental at Hertz’s location at Atlanta Airport (ATL), which was also the first location in the country to have this new technology.
He returned the car with a one-inch scuff on the driver’s side rear wheel. He was alerted to the damage minutes after dropping off the vehicle, with a picture of the damage, plus a bill for $440.
That includes a $250 fee for the repair, a $125 processing fee, and another $65 administrative fee. This was all revealed digitally, with not much transparency about what the processing or administrative fees are. Hertz defines a processing fee as “the cost to detect and estimate the damage that occurred during your rental,” while Hertz claims the administrative fee “covers a portion of the costs as a result of processing your claim.
This is where it gets even scammier. Hertz offered a $52 discount if the renter agreed to the terms and paid within two days, and offered a $32.50 discount if he paid within a week.
When he tried to inquire about the charge, the chatbot system used for handling claims doesn’t include any human agents. However, it can flag a claim, so that an agent can review it later. The issue here is obvious — the discount only applies if you pay almost immediately, and it can take days for someone to reach out to you.
In response to an inquiry about this practice, a Hertz spokesperson said the following:
“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.”
Hertz also refused to state whether the processing fee and administrative fee are higher for locations using this technology. It almost seems like Hertz is billing people for the technology that causes them to get charged for damage.
This makes me less likely to rent from Hertz
Even though Hertz is supposed to be a “premium” rental car agency, it doesn’t exactly have a great reputation. I mean, the company was forced to pay $168 million for having its customers arrested, which should tell you everything you need to know.
As I said, in theory there’s nothing wrong with using technology to detect damage. I actually appreciate the greater transparency. The issue, as I see it, is threefold:
- There’s no transparency as to how Hertz determines the cost of a repair; it seems that completely replacing a Volkswagen wheel typically costs less than what Hertz is trying to charge here for a tiny scuff
- Beyond the lack of transparency about the cost of the repair, the processing fee and administrative fee are absolutely ridiculous
- The lack of being able to instantly get in touch with a human is problematic
Let’s be honest — we all know that Hertz isn’t going to take this car out of service and repair it based on a tiny scratch on a wheel. Quite to the contrary, the company will probably wait until a car has a lot of serious damage, before fixing it, and the cost of those repairs will likely be nowhere close to what the company is trying to charge.
These developments make me less likely to rent from Hertz, because I feel like rentals will get costly pretty quickly. I like bringing back my rental, having someone inspect it, and then knowing that I can walk off without being worried that I’ll get an extra bill.
Obviously Hertz won’t share this data, but I’d be fascinated to know what kind of an increase we’re seeing in damage with this new system, and how much that’s contributing to the company’s bottom line. To what extent will customers vote with their wallets, though?
I can’t imagine that the underwriters of credit card rental car coverage are happy about this, as it’ll surely cause a big increase in claims over time.
Bottom line
Hertz is rolling out AI vehicle damage detection, and as renters, it’s something we should dread. The issue isn’t that technology is being used to transparently determine damage. That’s fair.
The issue is the lack of transparency when it comes to the cost of vehicle repairs, plus the processing and administrative fees. This is a massive money grab, and is a reason to think twice before renting from Hertz.
What do you make of Hertz’s new system for damage detection?
The faster Hertz goes out of business the better. Expiring points without notice and many other poor decisions by management have led them down the path to liquidation.
I have been frequently traveling to Italy over the past several years, and now live in Italy, and currently have ongoing monthly rentals so I can use my credit card primary insurance coverage.
I have rented with more agencies than I can name, including all the ones that have been mentioned in other comments (especially Sixt, Hertz, Avis and Europcar).
Never had an issue. Even with some of the bargain basement ones at...
I have been frequently traveling to Italy over the past several years, and now live in Italy, and currently have ongoing monthly rentals so I can use my credit card primary insurance coverage.
I have rented with more agencies than I can name, including all the ones that have been mentioned in other comments (especially Sixt, Hertz, Avis and Europcar).
Never had an issue. Even with some of the bargain basement ones at Rome FCO airport, who have the 1 star reviews. Never a problem upon return. Am I just lucky? Probably… but during every rental I take an extremely thorough video of the car and speak the date and time while I make the video so it’s part of the record. More often than not the counter agents see me doing this. Do they notate my reservation record, who knows?
This is the play and I have always done this; we also do a full video record of AirBNBs and Vrbos when we stay at them upon check-in and check-out. Maybe extreme but I have never had an accusation/question of damage I couldn't disprove.
I get the strategy for using CC insurance coverage but at least in the US I will always be leveraging my personal auto insurance policy. Damage/Collision is one thing. Liability...
This is the play and I have always done this; we also do a full video record of AirBNBs and Vrbos when we stay at them upon check-in and check-out. Maybe extreme but I have never had an accusation/question of damage I couldn't disprove.
I get the strategy for using CC insurance coverage but at least in the US I will always be leveraging my personal auto insurance policy. Damage/Collision is one thing. Liability is another. I have an acquaintance who is currently awaiting a six-figure outcome in their favor for a minor traffic accident in Manhattan. It's a cottage industry and you better CYA.
National defines normal wear and tear as anything that doesn't exceed the size of the Damage Estimator plastic tool (of which a kind manager gave me one a few years ago) and any scratches smaller than a US One Dollar Bill are considered normal wear and tear. Also, dings smaller than a US Quarter Dollar coin are normal wear and tear. What a difference
Agree with the general sentiment here that Hertz sucks. I rented from them for work because they were consistently among the cheapest and I had President's Circle through my Amex Platinum. Their website/technology is awful. Most of the time nowadays the President's Circle vehicles are 90 percent Malibus or Equinoxes. They nickel and dime like no other, and reaching a human to dispute any charges with them is nearly impossible.
In years of renting cars I think I've discovered the secret of Hertz and others.
The rental rate barely covers the cost of handling the car. All profit is made selling insurance/cdw/etc. This just adds to that situation. If you haven't paid for their overpriced "insurance" then they'll find a way to bill you for "damage", real or not. BE careful...take careful photos of the entire car, including the glass and interior....and the headliner. Then be prepared to argue.
Hertz is the British Airways of car rental agencies, it was once the best by far, now it's barely better than the discount companies. I'm sure they will recoup the costs to repair everything from a minor scratch to a major dent, plus make money with the fees to handle the claims, but they will lose market share. Customers will realize that renting from Hertz costs more when factoring in the cost of insurance or...
Hertz is the British Airways of car rental agencies, it was once the best by far, now it's barely better than the discount companies. I'm sure they will recoup the costs to repair everything from a minor scratch to a major dent, plus make money with the fees to handle the claims, but they will lose market share. Customers will realize that renting from Hertz costs more when factoring in the cost of insurance or paying for repairs. Another instance of a company tripping over a dollar to save a dime.
If you have credit card vehicle coverage, will they cover the ridiculous administrative and service fees?
I did the Porsche 911 2 hour rental with Lufthansa back when it was offered in Frankfurt. I went down to Hertz after landing at FRA, got the keys to a C4S, blasted down the Autobahn, then turned around and returned the car (and walked shakily back into the First Class Terminal from the adrenaline). The first class terminal offered to return the car to Hertz for me. After a few Coke Zero's and gummy...
I did the Porsche 911 2 hour rental with Lufthansa back when it was offered in Frankfurt. I went down to Hertz after landing at FRA, got the keys to a C4S, blasted down the Autobahn, then turned around and returned the car (and walked shakily back into the First Class Terminal from the adrenaline). The first class terminal offered to return the car to Hertz for me. After a few Coke Zero's and gummy bears I received a notification in German that I later learned read that there was damage to the car just below the threshold that I would be billed. It was my first and only time renting a car in Europe, and I am not excited to have to do it again.
About 7 to 8 years ago Hertz tried to scam me about damages I had not done to my rental for the day...
I have not touched them ever again. And I will never will. I will walk if I have to. I'll take a ride with a trucker and do whatever I have to do, but I will never rent with them again.
I would rather walk 500 miles than ever rent with Hertz. If they are the only option at the airport or location I need a rental car at, I would literally change my itinerary.
Hertz used to be the best and the most prestigious, sort of like the Emirates or Singapore Airlines of car rental companies. Now, it's trash, like Spirit or Frontier.
They were good in the 90's!
It's sad to see them enshitified like this.
I've said this elsewhere, but I can imagine that the rental insurance underwriters are going to end up suing Hertz, because one $440 claim is an annoyance but ten thousand claims will bring in the lawyers.
I recently made an account with Hertz because they're running a very good promo with Flying Blue at the moment (20 miles per euro). It felt like a trip to 90's, which is seemingly when the interface got its last update. It was so frustrating that I gave up on booking car with them, even though those miles could come really handy. The idea of this company trying to implement AI solutions when they can't...
I recently made an account with Hertz because they're running a very good promo with Flying Blue at the moment (20 miles per euro). It felt like a trip to 90's, which is seemingly when the interface got its last update. It was so frustrating that I gave up on booking car with them, even though those miles could come really handy. The idea of this company trying to implement AI solutions when they can't even get their website to meet today's standards makes me laugh almost as much as this company claiming they're premium.
As has been mentioned elsewhere, won't the renter's insurance companies start demanding real evidence that the renter caused the damage before making payouts to Hertz like this?
The last time I rented from Hertz the lady (who was Muslim) tricked me into prepaying for gas. Even though I said I return the car full. I drove less than 50 miles for theee sales appointments.
What tf die her religion have to do with this?
Context
Context
Top prize for ignorant comment of the year.
Muslims have a specific accent now?
What a bigoted moron
Rented a vehicle in February for 1 day, returned at airport - got an email 2 months later saying there was some damage and asked for my insurance information. Completely insane, but after I asked for more details Hertz said they would 'waive' the damage as a courtesy. The alleged damage was a chip in the windshield but I'm sure that vehicle was rented out multiple times after I returned it.
This company needs to be investigated by the Federal government and shut down! Honestly.
The government's job is to protect corporations. You are of no value to the government. Hertz can donate meaningfully to political campaigns. You cannot.
American voters clearly voted for less regulation and less government "interfering" on corporations.
The people in government who cared about consumers lost the vote, so get used to this as it's what voters want.
And to think that Marriott will use AI to assign rooms. And to think insurance companies will use AI to approve or deny claims.
What could possibly go wrong...
It's going to be REALLY fun once someone puts together an LLM to file claims and appeal denials. It's going to turn into computers arguing with one another.
All the more reason to drive through some muddy puddles so that all the return camera sees is a dirty car and if they claim they re-photographed it after cleaning you were no longer the last driver.
Will be solved by Hertz introducing AI servicing cleaning fees.
Will avoid renting from Hertz for this very reason.
Sixt is doing the same
Sixt has always been the worst company for claims.
Sixt in Austria shafted me for $2000 for some scratches they found in the interior door frame (so I didn't have pictures). It was absolutely not me, and was no where near 2k regardless.
I told them to sue me. Haven't heard back (10 months). Won't EVER be going back.
If they will commit to a full scan of the vehicle before I take it, documenting all pre-existing damage and providing me with the data in a useful format, I have no problem with this. I agree that the "admin fees" are skanky but I know I won't damage their car. My problem is being blamed for damage that they "missed" in the pre-rental inspection. I do a very thorough walkaround on any rental car...
If they will commit to a full scan of the vehicle before I take it, documenting all pre-existing damage and providing me with the data in a useful format, I have no problem with this. I agree that the "admin fees" are skanky but I know I won't damage their car. My problem is being blamed for damage that they "missed" in the pre-rental inspection. I do a very thorough walkaround on any rental car and i insist on documentation from staff before I depart. I guess I'll insist on that from Hertz, now, using their wonderful tech. If the whole convo breaks down, I'll walk next door to National.
I would never rent from Hertz but National has given me headaches as well. Especially if you try to drive between US/Canada, their billing is completely screwy and their customer service just hands you back and forth between incompetent and rude agents on each side. I was on a Do Not Rent list because of a whole saga last fall over their billing mistake, it was a nightmare to fix. The Executive area and ability...
I would never rent from Hertz but National has given me headaches as well. Especially if you try to drive between US/Canada, their billing is completely screwy and their customer service just hands you back and forth between incompetent and rude agents on each side. I was on a Do Not Rent list because of a whole saga last fall over their billing mistake, it was a nightmare to fix. The Executive area and ability to drive off the lot with any vehicle is industry-leading, I will give them that.
TL;DR: I miss Silvercar.
I almost exclusively rent from National. Never had a problem with them. Used domestically many times and in Scotland and New Zealand. Hoping my good track record continues when I head to Italy in a few weeks!
Hertz is absolutely the bottom of the pack, followed by Avis. I find Sixt to be decent (at least by the very low, shady standards of rental car companies).
Eh, last year in France, Sixt tried to charge me for damage that I could prove that I didn't cause. When I reached out to them their answer (after several days) was not to worry about the alleged E600 of damage because I had taken out the necessary insurance. Whom, I think they were going to charge for damage that THEY did after I dropped the car off.
They're all sleazy. My experience has...
Eh, last year in France, Sixt tried to charge me for damage that I could prove that I didn't cause. When I reached out to them their answer (after several days) was not to worry about the alleged E600 of damage because I had taken out the necessary insurance. Whom, I think they were going to charge for damage that THEY did after I dropped the car off.
They're all sleazy. My experience has been that National is the least bad. Hertz used to be the top of the top, just as their spokesguy OJ Simpson was at the time. They've both chosen downhill paths since then.
Sixt is decent? Seriously. A friend of mine rented an electric car from them. When he got home, he found they they added a charge for filling up his tank with 10 gallons of premium. Tell me again that Sixt is decent, NOT.
I switched to Avis due to AA LP earnings and... it's not much better there. I spent a week fighting windshield damage that was already on the car. Fortunately I took pictures and could prove it, but they willfully ignored my pictures for a long time. People with financial interests aren't much better than AI, it seems.
What locations feature those AI scanners?
Almost all rental agents have said they're not really worried about small scuffs and scratches. If Hertz is gonna charged you several hundred $$ for small rock chips, AVIS and even UBER may be looking better in some cases. As a credit card question for @Ben, would CSP (for example) cover for something like this?
I remember rental companies having a little card with a hole the size of a quarter or something similar. They say if the damage can fit in the circle, don't worry about it. I wonder if the Hertz AI is programmed to do the same. Maybe not according to the article.
This makes me less likely to rent from Hertz
Less likely? Avoid Hertz, they are repeat offenders when it comes to ripping off customers. Less likely? Geez...
The customer should be able to see the AI scan of the damaged area when the car was returned from its last rental, as well as a scan when the rental in question was checked out. Only then would the customer know that the damage was neither pre-existing or caused by a Hertz employee while preparing the car for the next rental.
These scans (date marked) should be supplied up-front. In fact, Hertz should be...
The customer should be able to see the AI scan of the damaged area when the car was returned from its last rental, as well as a scan when the rental in question was checked out. Only then would the customer know that the damage was neither pre-existing or caused by a Hertz employee while preparing the car for the next rental.
These scans (date marked) should be supplied up-front. In fact, Hertz should be required to supply a scan of the car after payment was made showing the damage to have been repaired or the payment required to be refunded.
It's just AI time - nothing that would cause Hertz substantial costs.
I rented from ATL right after they installed these. When you pick up the car you personally drive through an exit scan and then upon return you personally drive through a return scan, so it is clear if it happened on rent.
Why do you think that the Before they show is you going out, rather than some earlier scan?!
It has a before and after tab right there. What am I missing?
And one needs the Before and After before one leaves the dropoff location so one can inspect the car to see whether the damage is really there.
Hours later is no use - one cannot dispute.
I just rented from Hertz in Ireland. While they didn't have this AI scanner gizmo, at the counter, they did show me pictures of the damage they identified, and they also emailed me the pictures with a link to upload my own pictures. I took a whole bunch on the lot before leaving, so I sent them a few dozen :).
you are missing the point.. Hertz will be able to make this same charge to the next 15-20 renters of this same car. Real big profit, all to the bottom line.
Can you imagine...an OMAAT reader just happens to rent that vehicle in the future, gets charged for the same scuff, and realizes it's from the same vehicle in this story.
The lawsuit could be epic.
Extortion with lack of transparency. Plain and simple.
The one time I got hassled for supposed damage to a rental vehicle it was with Hertz. Which they backed down after I showed them the slip of paper they provided when I picked up the car to document how the supposed damage was already there from a prior rental. This is just more reason to not rent with Hertz. There's nothing that can convince me to rent with them again after their "stolen car" scandal.
SIXT @ AMS is doing the same thing. There is a checkpoint with cameras at exit and another one at reentry that automatically determines damage.
No matter where you rent in Europe, you will get scammed. Thus, I only rent with full insurance no matter what. Last year I rented a BMW from Sixt in Italy and the paperwork I had to sign had 3 pages of damages listed. I paid full insurance but guess what? When I returned the car, the agent found a "new" scratch on a 80% scratched wheel. I knew I had not added another scratch...
No matter where you rent in Europe, you will get scammed. Thus, I only rent with full insurance no matter what. Last year I rented a BMW from Sixt in Italy and the paperwork I had to sign had 3 pages of damages listed. I paid full insurance but guess what? When I returned the car, the agent found a "new" scratch on a 80% scratched wheel. I knew I had not added another scratch since I was the only driver of the car and never hit any curbs. Whatever, he showed me the "new scratch" and I told him to check the contract and see I had full insurance. He looked surprised, I smiled and left. If renting in Europe, either pay for full insurance or be prepared to get charged for damages that were already in the car.
That's why most people avoid SIXT. I would never rent from them even if they were the only company with cars available.
What do you recommend in Europe? They are all awful. At least with Sixt the existing damages are minor and I know if I pay their full insurance they won't bother me. I once rented from Hertz in Europe and the car had been in an accident and a rear door would barely open because of a huge dent. I told them I didn't want that car and they said my options were that car or no car.
I've rented with National/Enterprise in Spain, Cyprus, Ireland, Estonia, Bulgaria, and numerous times in Germany. I've never had any issue. I generally photograph the vehicle, but I've never had a single mention of damage. Germany especially fees just like renting in the US.
@Santastico
The response to that is to say that they are in breach of contract.
So either they get a car from one of the other companies and deal with paying them, or you will go to the other company and charge them the difference.
I had to do this a couple of times when only certain car classes could be driven over the old Iron Curtain.
One time they found the car, the other time they paid the difference.
Well, good luck with that when you land in Sicily after almost 24 hours flying with connections, kids tired, 100F outside, etc… I tried talking to Hertz in the US but no success. Ended up getting the car and later received a refund for 1/2 of the rent but had to drive the crashed car for 10 days.
Ironically in Europe, I've found Hertz to be amongst the best with Europcar.
Sixt is universally bad around the world. I've had as many claims with them as rentals, no claims with any other rental agency and I was renting cars in Europe every weekend.
@Santastico, see my comment above. SIXT pulled that excrement with me in Mulhouse. I had full insurance, and their answer was "don't worry about anything, you're good!" They were charging the insurance to pay for stuff that they did after I dropped off. I literally had pics, which (shocker) they weren't interested in.
Sleazeballs. But all of the agencies are now. I'm with you, outside the USA: buy full insurance.
I used to rely on CC insurance (luckily without issue), but lately I have decided to go "super coverage, zero deductible" insurance on cars in Europe. Yes, it costs more but not having to worry about every little ding (or made up damage) is worth it. I do buy it upfront through Autoeurope, because it costs a bigger fortune at the counter.
It would be an interesting exercise for a law firm or newspaper to rent a car, drive it around the block, and return it (ideally with full video documentation of the whole "trip") and see if anything gets flagged.
@JJ
Sixt at LHR T5 too
I've had great experiences with Sixt all across Europe and even a in few more exotic locations (e.g. JNB, SJO, MEX). I always, ALWAYS, take photos of the cars at the beginning of the hire, but haven't had any reason to rely on them. You need to be super diligent when picking up a car, last year at MAD I found 3-4 bits of damage that weren't in the form when hiring from Goldcar. It...
I've had great experiences with Sixt all across Europe and even a in few more exotic locations (e.g. JNB, SJO, MEX). I always, ALWAYS, take photos of the cars at the beginning of the hire, but haven't had any reason to rely on them. You need to be super diligent when picking up a car, last year at MAD I found 3-4 bits of damage that weren't in the form when hiring from Goldcar. It was well worth spending half an hour going through everything with a fine toothcomb as I only paid €85 to rent a decent car for a full week.
"This makes me less likely to rent from Hertz" Why would anyone rent from Hertz if you can rent from National? I have been renting from National for over 20 years and never ever had a single issue with them.
National's pricing has been crazy since the pandemic. Anytime I compare rates they are often 2-3x more than Hertz.
Agreed, National has been really good for me as well. I've only had one problem with them, they only had one SUV available when I rented from Fairbanks AK pre-COVID. There was a crack in the windshield, and I informed the agent with photos before I drove off. I still got billed for the damage after I returned the car, but followed back up and they dropped the damage charges with no pushback.
The renter deserved it. After everything that we've heard about Hertz, the public in general and not just the hobby, anyone who still chooses Hertz has it coming to them.
The Hertz name is global, but local businesses aren't all run the same way. I have rented from them in places like Greece where they are up there with the best (i.e. Sixt).
That little scratch won’t impact the resale value of the car at all (most of the time auto auction) meaning Hertz will never get it fixed. Hertz biggest competitor (enterprise/national) specifically tells customers if the scratch/dent is smaller than a golf ball don’t worry about it you won’t be charged because we won’t fix it. Much more honest.
I prefer renting from Enterprise and they have inspired me as a golfer. I now make sure that all the golf balls I buy are no smaller than a car dent.
Of course they won’t take the car out of service to repair for a scuff, but in addition to what already been outlined, they’ll charge the renter for “Loss of use,” which is basically the imagined lost revenue (at full cost, of course) from taking the car out of service for multiple days.
I recently had a major wheel ding on my BMW buffed out at the dealer for $100. And BMW dealers are not exactly known for their low pricing.
This is really no surprise. Hertz has been running an unethical damage-billing scheme for years; they've tried to get me for several times for damage that either didn't exist or was caused by someone else.
Everyone should be putting Hertz on their "DNR" list.
Just had two wheels refurbished here in England. I only paid £80 because I chose the express service (1 working day turnaround)- the slower 'standard' service is just £30 per wheel for a full refurbishment.