Hertz Deploys AI to Detect Vehicle Damage — Helpful Innovation or Customer Risk?

In an effort to modernize its rental experience and reduce costly disputes, Hertz (along with its Dollar and Budget subsidiaries) will soon deploy AI-powered vehicle inspections designed to automatically detect damage to rental vehicles before and after your trip. But will this protect you as a consumer, or leave you more vulnerable?

Hertz Adds Artificial Intelligence To Vehicle Inspections

Let’s start with what Hertz is doing. Through a partnership with Ravin AI, an Israeli company that specializes in computer vision vehicle inspections, Hertz is piloting a new system that uses 360-degree imaging to scan vehicles for damage before and after rental. The scans are processed by machine learning algorithms that can detect scratches, dents, cracks, and other imperfections–likely with greater accuracy than a human inspector.

With more than half a million vehicles around the globe, keeping vehicles in well maintained condition before, during, and after rentals is a critical priority for Hertz. Vehicle assessments in the rental industry have always relied heavily on manual inspections conducted in varying conditions. By implementing UVeye’s advanced AI-driven inspection technology, Hertz can significantly enhance the frequency, accuracy, and efficiency of its vehicle maintenance processes, ensuring reliable service, improved vehicle availability and transparency for its customers.

UVeye’s AI-powered camera systems and machine learning algorithms enable real-time, automated inspections of a vehicle’s body, glass, tires, and undercarriage. The technology enables improvements in safety and vehicle availability by detecting maintenance issues with unprecedented speed and precision. UVeye’s tire treadwear system captures high-resolution images that are instantly analyzed to determine whether a tire needs replacement, reducing the need for manual checks and ensuring timely, proactive service. By complementing manual checks with UVeye’s technology, customers will enjoy more efficient and transparent automated checks when picking up and dropping off their vehicles.

The technology has been trialed by Hertz in Sweden and Norway and now comes to the USA, first to Hartsfield-Jackson Atlanta International Airport (ATL) and by the end of the year to 100 airports across the United States.

Why This Matters (And Why I’m Cautious)

On its face, this seems like a win-win: faster check-ins, fewer arguments about “that scratch that was already there,” and better record-keeping. I find it annoying and antiquated to have to go around the car taking photos and videos (though this is still smart to do). But if you’ve rented from Hertz lately—and I have—you know that technological progress at the rental counter often lags behind the promise in the press release.

More importantly, AI is only as good as the people who use it. Who controls the final decision when a machine flags damage? Will customers have access to the photos before and after rental? What if the AI flags a blemish that’s imperceptible or already documented? I can’t see the practice of still taking your own videos and photos changing.

And remember, Hertz has not had a great track record in this area. This is the same company that falsely reported customers for auto theft and had them jailed over administrative errors. Color me skeptical until this is implemented with full transparency and customer access to the same inspection data Hertz is relying on.

I suspect this is more about revenue generation for Hertz than anything else…which is fair enough, but still disappointing.

Why Using the Right Credit Card for Rentals Matters More Than Ever

With Hertz soon employing AI to scan for even the slightest damage, it has never been more critical to rent with a credit card that offers primary rental car insurance coverage. If a machine flags a scratch or dent (rightly or wrongly) you could find yourself responsible for hundreds or even thousands of dollars unless you’re covered.

That’s why I always recommend using a card like the Chase Sapphire Preferred or Chase Sapphire Reserve, which both offer primary rental coverage when you decline the rental agency’s collision damage waiver and pay with your card.

Rental companies, especially in the US, are notoriously aggressive when it comes to post-rental damage claims. If AI becomes the new standard in detecting “damage,” having the right coverage is no longer just smart, it’s essential.

CONCLUSION

I love technology when it enhances the travel experience—but only when it serves the customer, not just the bottom line. If Hertz uses AI to make the rental experience more efficient and eliminate disputes, I welcome it. If it becomes a new way to automatically charge renters for questionable damage, then this system could make things worse.

Even when this new technology rolls out, take your own walkaround video before and after renting a car. AI may be watching–but it is common sense to have your own backup.

What do you think about Hertz’s new UVeye technology?

image: Hertz // hat tip: View From The Wing