You’ve just returned from a long vacation and dropped off your rental car without a scratch — or so you thought. With new AI inspection technology, you could find yourself billed for damage the human eye failed to notice.

This is what happened to one unfortunate traveler last month who found themselves slammed with a $440 bill just minutes after dropping off the keys. The bill—which included $190 worth of processing and administrative fees—was for a one-inch tire scuff uncovered by Hertz’s new AI damage detector. According to the customer, they were offered two discount options: pay within two days for a $52 discount or within a week for a $32.50 discount.

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In this new system, customers are alerted to AI-detected damage via chatbot. While there is an option to flag the damage report for human review, there is no direct way to introduce a live representative to the conversation. Customers can also flag the claim through traditional customer service channels. However, according to the contact pages for Hertz and its sister companies, Dollar Car Rental and Thrifty, it can take up to five business days to receive a response, leaving customers with the choice between forfeiting the potential discounts to contest the fee or abandoning the dispute in favor of a lower price.

According to Hertz, 97% of cars returned show no damage when tested against their new AI screening. A company spokesperson noted that “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.”

While the goal is to increase the speed and accuracy of damage assessments, cases such as this call into question whether consumers will ultimately pay the price for this new policy, set to roll out at 100 Hertz and affiliate brand airport locations by the end of the year.

• How to Protect Yourself Against Rental Car Damage Claims

The best defense against car rental damage claims is a thorough examination of your rental car before you leave the lot. Take photos and video of all areas of the vehicle, including the interior, exterior, tires, bumpers, windows, and under the hood. Note any dents, scratches, chips, broken lights, or other defects and report them to the rental company before you get behind the wheel. Consider investing in Loss Damage Waiver (LDW) insurance, which will cover the bulk of potential damage claims.

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