The new AI scanners being utilized by Hertz are coming under fire for charging customers for minor defects. Reports have come in that the rental agency has used the system to turn small blemishes into sizable payouts and claims that the system allows the company to go after five times as many customers as before. Fortunately, there are things you can do to defend against the technological trend.
We live in an age where just about everyone and everything is trying to take advantage of you financially. In the automotive realm, this has manifested via aggressive financing, selling user data to insurance companies, and leveraging connectivity to profit off subscriptions to hardware already equipped to vehicles. More recently, we’ve seen artificial intelligence being used by rental agencies to cut back on human staff while charging customers more for alleged damages.
Hertz, which seems obsessed with jumping onto the latest trends whether they make sense or not, recently started utilizing AI scanners to evaluate the condition of vehicles. However, we’ve already seen how well its pivot to all-electric vehicles went and it seems plausible that AI-driven scanners are in for an equally cold reception. Despite only having been in operation at select locations for a couple of months, Hertz’s new system is already coming under fire.
The New York Times reported on a situation where a family had rented a vehicle from the company and was subsequently charged $440 for a small dent. A significant portion of that fine went toward fees associated with assessing the damage and processing the claim — odd considering the whole system is now automated. Hertz likewise suggested that the customer could be eligible for a discount if they paid it off quickly without asking any questions.
However, a human employee reportedly confirmed that they didn’t notice any damage upon an initial inspection and the customer likewise said the photos provided though the Hertz app were equally questionable. This is on top of numerous people claiming on social media that they were being fined for scuffs that the vehicle possessed when they left the facility. The bar for what constitutes “damage” is apparently rather low and inconsistent.
While we’ve all been fined over debatable findings on our rental vehicle, automation seems poised to both lower the bar for what constitutes damage and make it more difficult to discuss the situation with an actual human being. So, what are renters to do?
Noticing the negative hype surrounding the issue, The Drive offered a handful of solutions. For starters, pulling out your camera and documenting the condition of the vehicle before you take possession — something that’s equally advisable even if you’re not using an AI-based system.
Having evidence that the car previously had dents and dings will undoubtedly be helpful should you find yourself at odds with a company demanding you pay for them. Carefully reading the terms of service, especially the part about what technically constitutes blemishes you could be fined for, will likewise be helpful. If you see your rental with a mark that you might be charged for, it could just be better to go back to the office and demand something else.
Neither of those offer any guarantee of preventing the AI scanner from charging you to begin with, however. That’s why the outlet recommended getting the added insurance and being aware of what exactly you are (or are not) covered for via your own credit card. Many cards offer some amount of protection on rentals. But it’s typically a better bet to buy the added coverage at the rental office. Unfortunately, this ultimately means you’re paying them more money upfront for presumptive damages that may (or may not) be caught later.
That’s why my favorite recommendation is to simply not rent from companies using AI scanners. When you get to the desk, simply ask the clerk if they use an automated system. If they say that they do, take your business elsewhere. This not only guarantees that you can avoid fighting an automated system but it also sends a message to companies that you don’t want to deal with artificial intelligence to begin with.
Hertz is currently in the process of installing AI scanners at 100 locations (primarily airports) by the end of this year. However, there doesn’t seem to be any indication that it wants to stop there and it isn’t the only company considering making the shift. Avis has said it is actively considering testing out AI inspections and Sixt already leverages a system that works in tandem with human employees. CarMax and General Motors have likewise invested in UVeye, which is the company that built the system Hertz is using.
With automation nullifying human employees, the assumption is that the businesses will save on overhead costs while also helping to boost revenue by flagging minor defects. The new system isn’t just giving an overall assessment of the vehicle. Hertz claims that it’s tracking tire wear, hairline fractures in the windshield, and anything that might have occurred beneath the car without you noticing. It’s even scanning you while it scans the vehicle. By not participating in that process at all, you may help discourage other brands from following in its footsteps.
[Images: Hertz]
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