Rental car AI scanners flag alleged damage, leaving customers with surprise bills

[Timber Rattler]

https://www.investigatetv.com/2026/06/29/rental-car-ai-scanners-flag-alleged-damage-leaving-customers-with-surprise-bills/

Rental car companies are increasingly using artificial intelligence to detect vehicle damage, replacing human inspectors with high-tech camera systems that scan cars in as little as five seconds.

But the use of the new technology is raising concerns among experts and consumers about its accuracy, as more customers report being charged hundreds of dollars for damage they say they never caused.

These AI-powered systems, mostly found at large airports across the country, use high-resolution cameras mounted on arches to photograph vehicles at pickup and drop-off.

Ben Winters, director of AI and privacy at the Consumer Federation of America, said the software is supposed to compare those images and flag possible damage, including scratches, dents, nicks and color differences.

“There’s like thousands of photos,” Winters said. “There’s all these cameras that are taking really zoomed in photos.”

He said rental car companies have adopted the technology over the past two years as more businesses look to automate the inspection process.

“Everyone feels like they need to get in on it in some way,” Winters said.

But he said the systems are not required to prove how accurate they are, and even minor issues – such as dirt or water droplets – can be flagged as possible damage.

“One of the things that we have seen more than several times is that if there’s a little bit of dirt or if it had recently rained, there’s water droplets still on the car when you pull through, that might sort of trigger as a piece of damage,” Winters said.

EXCERPT

The latest scam by the big car rental companies, this time using AI...

[Kamaji]

That's why I always use my phone to make a video survey of the entire exterior of any car I rent, including the glass, the roof, and the rocker panels.  Takes about two minutes to get a good video record - usually I even get the rental agent in the view, so there's no question about when the video was taken.