Like most regular travelers, I have experienced my fair share of issues when renting a car. I’ve arrived at the airport only to find that my reservation had been lost, that service was out of cars, even though I had reserved one well in advance, or even that the desk had closed prematurely.
As if the car rental process wasn’t already stressful enough, one prominent rental car company is moving forward with a controversial plan that could add even more stress to your travels.
For years, rental car companies have performed manual inspections on cars when they are returned, checking them for any potential damage incurred by the driver. However, Hertz is now moving forward with a plan to digitally inspect each vehicle.
Early on, however, there has been a lot of skepticism and criticism about the move.
Hertz Rolls Out New Technology
Hertz, one of the largest car rental companies in the United States, is moving forward with new technology that uses AI to digitally check cars for damage.
In a statement, Hertz said that the manual inspection process of its cars “caused confusion and frustration” and was “subjective and inconsistent.”
“With digital vehicle inspections, we’re introducing much-needed precision, objectivity, and transparency to the process — giving our customers greater confidence that they won’t be charged for damage that didn’t occur during their rental, and a more efficient resolution process when damage does occur,” the company said in a statement to CBS News.
Hertz added that the new technology should give customers “greater confidence that they won’t be charged for damage that didn’t occur during their rental.”
Hertz told CBS News that it is currently using the new technology at 10 airports throughout the country, but that it hopes to expand the technology in the future.
Lawmakers Demand Answers
While Hertz has made it pretty clear it intends to move forward with the technology, lawmakers on both sides of the aisle have expressed concern about the move.
Democratic Sen. Richard Blumenthal of Connecticut has demanded answers from the rental car company about how the technology will be used, according to CBS News.
Meanwhile, Republican Rep. Nancy Mace of South Carolina, who is the chair of the Subcommittee on Cybersecurity, Information Technology, and Government Innovation, had similar concerns.
“Hertz is apparently the only car rental company in the United States that issues damage assessments to customers without human review,” Mace noted.
Hertz Faces Problems Already
The new technology has only been in use for a few months, but it has already led to at least one high-profile incident that generated a slew of negative press.
In a LinkedIn post last month, Adam Foley, who actually advises companies on using AI technology as his profession, told a story of a recent experience with Hertz in which he was charged nearly $200 for what he felt were negligible damages that would not have even been detected by humans, if they even existed at all.
“Upon picking up the car and exiting the facility — high-powered cameras took a 360 picture of the car. Upon returning the car, a similar process took place,” Foley wrote in his post. “2 hours later, I received a notification that damages were found which highlighted the areas. One small ding on the roof (but possibly just dirt or anything else that could throw off a camera) and one similar artifact on the hood. Nothing any human would detect or reasonably consider ‘damages.'”
Foley said that the automated message from Hertz told him that he owed $190, but it would only be $125 if he paid immediately – a tactic he called out as manipulative. He also pointed out that he was immediately threatened with legal action if he did not pay.
He went on to describe the lengthy and cumbersome appeals process and how difficult it was to speak to a human throughout the process.
Foley is not the only one to face problems like this. Lindsay Owens, a Washington, D.C.-based consumer advocate, said that other customers have experienced similar situations.
“We’ve seen cases where customers have disputed the damage because they think it’s a shadow and not actually a dent or a scratch or a mark,” Owens told CBS.
It’s worth noting that Hertz did eventually refund Foley, but it came after his post went viral on social media, sparking widespread outrage and attracting substantial media attention. Without that, he isn’t sure that he would have received a refund.
“I think that without national news coverage the charges would still be standing today,” Foley said. “It shouldn’t take the amount of publicity I received following my post to be treated like a valued customer.”
Foley said that had he been informed that Hertz was using that technology before he rented the car, he likely would have chosen another rental service.
How to Avoid This Technology
While Hertz has embraced this technology, its major competitors largely have not.
Avis – which also owns Budget, Zipcar, Payless, and Maggiore – told CBS News that its inspections remain “human-led.” Meanwhile, Enterprise Mobility, which owns Enterprise Rent-A-Car, National Car Rental, and Alamo Rent A Car, said it did not use the technology at their rental locations.
Sixt, meanwhile, confirmed to CBS that it does use the technology at some locations.
However, it’s worth checking with your rental service before booking, since policies tend to often and quickly.
