How to Protect Yourself from AI-Driven Damage Charges on Rental Cars: What You Need to Know in 2025
The car rental industry is undergoing a technological transformation — but not everyone’s thrilled about it. One of the biggest names in the business, Hertz, is rolling out AI-powered vehicle scanners across its locations, which automatically detect even the smallest dents, scratches, and scuffs when you return your rental.
While Hertz insists this system adds "transparency and speed" to the return process, many customers have been left shocked by hefty bills for damage they say is barely visible — or wasn’t even their fault.
The good news? You can protect yourself. At SimplyExcess, we believe in keeping you covered and in control. Here's a look at how these new AI scanners work, what risks they pose, and what steps you can take — including getting third-party excess insurance — to avoid unpleasant surprises.
What Are These AI Scanners — and Where Are They Being Used?
As reported by the New York Post last week, Hertz has begun installing UVeye artificial intelligence scanners at select U.S. airport locations including:
- Atlanta Hartsfield-Jackson (ATL)
- Charlotte Douglas (CLT)
- Houston George Bush (IAH)
- Newark Liberty (EWR)
- Phoenix Sky Harbor (PHX)
- Tampa International (TPA)
These scanners use machine vision to capture high-resolution images of your rental before and after your trip. If the system spots any change — a scuffed alloy, a new dent, or a minor scratch — it automatically flags the damage and generates a bill.
While Hertz says that "over 97% of rentals are incident-free," customers across the U.S. are reporting charges of hundreds of dollars for imperfections smaller than the company’s own published damage thresholds.
Worse, Hertz plans to expand these scanners to 100 locations by the end of 2025. And while the tech is currently limited to some U.S. airports, we expect it to spread globally and influence other rental companies — including in Europe, Australia, and the UK — where AI-driven inspections are already being tested by companies like Sixt, Avis, and Europcar.
Why This Matters to You
Under AI inspection, the margin for error is vanishingly small. Human staff may overlook a one-inch rim scratch — but the scanner won’t. One renter was charged $440 for a barely visible blemish that included:
- $250 for the damage
- $125 for "processing"
- $65 for "administration"
And if you don’t pay right away? You could face collection actions or your details being flagged by other rental companies.
How to Avoid Surprise Damage Charges
Here’s what we recommend to stay protected in 2025:
1. Steer Clear of Scanner Locations — When You Can
If you're renting from Hertz or its sister brands (Dollar, Thrifty), try to avoid scanner-equipped locations. Unfortunately, there’s no easy way to find out which sites have the technology — and Hertz has made it hard to get answers. Phone calls go unanswered, and online resources don’t provide scanner status.
If in doubt, consider renting from other agencies or choosing independent or local car hire firms that still use manual inspections.
Sixt, for example, uses AI scanning too — but currently requires human confirmation before issuing a charge. That’s not foolproof, but it’s a more measured approach than Hertz’s fully automated system.
2. Take Photos and Video – Every Time
Before driving off the lot, spend five minutes walking around the car with your phone:
- Record a video from multiple angles
- Take clear, well-lit photos of each panel, wheel, and bumper
- Capture close-ups of any existing damage
Repeat this process when you return the vehicle. Even if Hertz doesn’t acknowledge your photos, third-party documentation is vital if you dispute a charge — and may even be required by your excess insurance provider.
3. Don’t Rely on Damage Thresholds
Hertz’s website says it won’t charge for scratches or dents under one inch — but real-world reports suggest otherwise. Customers have been billed for marks clearly below these thresholds.
The fine print states their examples are "illustrative only," meaning the AI — and Hertz — can ignore those guidelines at will.
So even if the damage looks too small to matter, don’t assume you’re in the clear.
4. Expect Poor Customer Support
If you’re wrongly charged, don’t expect an easy fix.
Hertz’s dispute system runs through a chatbot, and there’s no phone support for these claims. Emailing may get you a reply in up to 10 days, but by then you may have missed your chance for a discount or early resolution.
One customer told the New York Post they were offered a $30 discount if they paid quickly — but said: "Saving $30 to accept responsibility is not worth it."
5. Protect Yourself with Third-Party Excess Insurance
This is where SimplyExcess comes in.
Rental companies typically charge excesses of £1,000 or more for damage — even for tiny cosmetic issues. If you decline their expensive in-house cover, you’re liable for the full cost of any repairs.
At SimplyExcess, we offer comprehensive car hire excess insurance starting from as little as £2.99/day, covering:
- Scratches, dents, and scuffs
- Windscreen, tyres, wheels, roof, and underbody
- Admin and processing fees
- Rentals in the UK, Europe, or worldwide
Our policies are valid with all major rental companies — including Hertz, Sixt, Avis, Europcar, Budget, and Enterprise — whether you book directly or through a travel site.
And unlike many credit cards or travel insurers, we don’t make you jump through hoops. You’re protected before, during, and after your rental — with easy claims and no fuss.
If you're a frequent renter, our annual policies offer unbeatable value and convenience — and cover multiple trips all year long.
A Word of Caution: This Is Just the Beginning
The rise of AI in car rentals isn’t going away. As fleets become more automated and companies look for cost-saving efficiencies, machine-led inspections are likely to become the industry norm.
In Europe, we've already seen trials of similar systems in France and Germany. Australia’s major airport rental firms are quietly testing AI check-in bays. And in the UK, it's only a matter of time before these technologies land at Heathrow, Gatwick, and beyond.
For renters, that means more automation, less flexibility, and a higher risk of unfair charges — unless you take the right steps now.
Final Thought
The days of "eyeball" inspections and handshake agreements are behind us. AI has brought speed and scale to the car rental business — but not necessarily fairness.
That’s why it’s more important than ever to:
- Document everything
- Avoid scanner-heavy locations
- Understand your rights
- And insure yourself properly
At SimplyExcess, we’re here to make sure that even if the scanner says "damage detected", your bank account doesn't take the hit.