Last Updated on December 24, 2025 by Elizabeth
In the spring of 2025, we shared that Hertz had installed AI-assisted vehicle scanners at its locations at major airports across the US. While Hertz claimed the system will “enhance the frequency, accuracy, and efficiency” of its operations, we were skeptical. We suspected the real purpose of introducing AI rental car inspectors was to hold customers accountable for damage that might otherwise go unnoticed in a manual inspection.
By July, a news story validated our fears. A man who rented from Hertz out of Atlanta’s Hartsfield-Jackson International Airport returned the car with a one-inch scuff mark on the driver’s side rear wheel. “Minutes” after putting the vehicle through the AI scanner, he received a damage charge of $440 for the offense. The breakdown was $250 to repair it and a whopping $190 in “processing” and administrative fees. In October, a remarkably similar story surfaced. Again, a customer returned a car to Hertz at Hartsfield-Jackson airport. Again, the AI inspector generated a damage charge of $440 for a wheel scuff, which broke down as $250 for the repair and $190 in processing fees. This time, the customer refused to pay, and questioned why “people are consistently being charged $440 for a scratch.”
Over the year, this issue has become so controversial that some experts, including consumer advocate Clark Howard, now refuse to rent from Hertz.
What To Do If You Get Slapped With Hertz’s AI Damage Fee
Document before and after.
We can’t stress it enough: When you pick up your next rental car, take a few minutes to run through our quick to-do list before driving off. Be sure to take pictures of every dent and nick on the vehicle’s exterior and interior. Snap photos of the wheels and the windshield. No pucker or crack is too small to document. Then, when you return the car, don’t just toss the keys to the agent and be on your way. Take another round of photos, covering the same ground as you did when you picked up the car and pay special attention to the windshield and the tires. Ideally, the before and after photos will be virtually identical—and they will be your proof should any spurious charges show up later on your final bill.
Don’t pay immediately (if possible).
As egregious as the charge itself is the strong-arm tactic Hertz uses to get customers to pay the damage fee quickly. As noted in this Insider Edition segment, Hertz offers a significant discount, typically about 30%, if customers pay the fee within two business days of receiving the bill. But if you do that, know that it will be much harder to appeal what you may believe is an unfair and wrongful charge in the first place.
Demand a human review.
Contact Hertz’s customer service team—don’t deal with a chatbot—and tell them you are appealing the fee. Demand to see the damage report. Find out where to send a letter or email and your own photographic evidence refuting the damage claim. Document your call, noting the day and time and the name of the customer service representative. Moving forward, save all documentation until the case is resolved.
Appeal in writing.
With your email or letter, include your before-and-after photos that prove no new visible damage was present at the time of the return. You can also use your evidence to dispute the charge with your credit card provider.
Escalate.
If your appeal is unsuccessful, escalate your case to a higher manager. You might also contact a media ombudsman such as Consumer Rescue or Elliott Advocacy, which, if they take on your case, can give it more visibility, which puts added pressure on the company to bring the matter to a reasonable end.
Report the incident to consumer protection agencies.
If you think the charges were deceptive or predatory, you might also consider lodging a complaint with the Better Business Bureau or the Consumer Financial Protection Bureau.
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