New features on cars and phone apps can track where you go, when and how fast—among many other things. Here’s what to do about it.
3 min
Your car is watching you. What can you do to stop it?
Many vehicles today and their related phone apps are packed with safety and convenience features, including digital maps, navigation linked to GPS and the internet, remote starting and vehicle locaters to find your car in a crowded parking lot. Many also have microphones for voice control and some have cameras that detect who is driving to adjust things such as the seat.
But those features and others can have a dark side: Many can track where you go and when, how fast you drive and how hard you brake, where you park and spend time, even what music or podcasts you listen to. Such information can be a gold mine for marketers and insurers—and a target for hackers.
Privacy researchers say car buyers may not realise they agree to have such data collected by the automaker when they sign the papers for a new vehicle or use the carmaker’s phone app.
The Mozilla Foundation, a technology-focused nonprofit, examined the privacy practices of 25 car brands. Its conclusion: “These are the worst of any [product] category we’ve reviewed,” says Jen Caltrider, director of the group’s Privacy Not Included program. Among its findings are that most carmakers collect personal information, give customers little control over it, and may sell or share it with others.
Privacy experts say they also are concerned about provisions in car-maker privacy policies that allow them to share driver information with law-enforcement authorities under certain circumstances—sometimes without a warrant.
On May 14, the Federal Trade Commission told vehicle makers that it was monitoring their actions regarding car data. “Cars are much like mobile phones when it comes to revealing consumers’ persistent, precise location,” the agency said in a blog post. It added that companies “do not have the free license to monetise people’s information beyond purposes needed to provide their requested product or service….”
The car industry says that the combination of vehicle data monitoring, GPS and wireless communication—a field known as telematics—provides important features, some of them safety-related. Some systems can detect when you’ve been in an accident and call emergency services, or locate a car if it’s stolen. They can help you avoid a traffic jam or potential road hazards. Cars also can give you maintenance reminders, such as when a vehicle needs an oil change or new tires, and allow the carmaker to track the durability and function of certain components for future improvements.
A vehicle-industry trade group in 2014 issued voluntary guidelines for the collection and use of car data. The group, now called the Alliance for Automotive Innovation, says its members should give car owners and lessees choice in the “collection, use and sharing” of certain information and that this information should be collected “only as needed for legitimate business purposes.”
Some privacy groups, however, say the voluntary guidelines aren’t specific enough and aren’t always followed.
“It seems like an empty promise,” says Thorin Klosowski, a security and privacy expert with the nonprofit Electronic Frontier Foundation. “Car companies are becoming tech companies. Self-policing hasn’t been shown in other tech industries to be a reliable way for companies to operate.”
What is needed, according to these experts, is a federal privacy-protection law along the lines of the European Union’s General Data Protection Regulation. The car industry, for its part, also backs a federal privacy law , in part to have a nationwide standard as a number of states have adopted their own, differing laws.
Most carmakers issue their own lengthy privacy policies stating how they collect and disseminate car data. Some state that they can share or sell the information to third parties including marketers if the car owner agrees to it.
Among the six biggest sellers of vehicles in the U.S., Ford Motor says customers can turn off data and location sharing with the company. It says it “doesn’t sell any connected-vehicle data to brokers, period.” General Motors says it is “fostering trust through responsible data practices, enhanced user controls and clear benefits for customers.” Toyota says it gives customers “transparency and choice” in how vehicle data is collected and used and that they can “turn off all data transmission.”
Stellantis, owner of Chrysler, Dodge and Jeep, says any data it collects “is in accordance with applicable state privacy laws . Accordingly, Stellantis provides customers with a way to opt out of data collection.” Honda says it is “very clear about what we collect and how our owners can opt out” and “when we might share collected data with third parties.” Hyundai declined to comment and deferred to the Alliance for Automotive Innovation for a response.
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Report by the San Francisco Fed shows small increase in premiums for properties further away from the sites of recent fires
3 min
Wildfires in California have grown more frequent and more catastrophic in recent years, and that’s beginning to reflect in home values, according to a report by the San Francisco Fed released Monday.
The effect on home values has grown over time, and does not appear to be offset by access to insurance. However, “being farther from past fires is associated with a boost in home value of about 2% for homes of average value,” the report said.
In the decade between 2010 and 2020, wildfires lashed 715,000 acres per year on average in California, 81% more than the 1990s. At the same time, the fires destroyed more than 10 times as many structures, with over 4,000 per year damaged by fire in the 2010s, compared with 355 in the 1990s, according to data from the United States Department of Agriculture cited by the report.
That was due in part to a number of particularly large and destructive fires in 2017 and 2018, such as the Camp and Tubbs fires, as well the number of homes built in areas vulnerable to wildfires, per the USDA account.
The Camp fire in 2018 was the most damaging in California by a wide margin, destroying over 18,000 structures, though it wasn’t even in the top 20 of the state’s largest fires by acreage. The Mendocino Complex fire earlier that same year was the largest ever at the time, in terms of area, but has since been eclipsed by even larger fires in 2020 and 2021.
As the threat of wildfires becomes more prevalent, the downward effect on home values has increased. The study compared how wildfires impacted home values before and after 2017, and found that in the latter period studied—from 2018 and 2021—homes farther from a recent wildfire earned a premium of roughly $15,000 to $20,000 over similar homes, about $10,000 more than prior to 2017.
The effect was especially pronounced in the mountainous areas around Los Angeles and the Sierra Nevada mountains, since they were closer to where wildfires burned, per the report.
The study also checked whether insurance was enough to offset the hit to values, but found its effect negligible. That was true for both public and private insurance options, even though private options provide broader coverage than the state’s FAIR Plan, which acts as an insurer of last resort and provides coverage for the structure only, not its contents or other types of damages covered by typical homeowners insurance.
“While having insurance can help mitigate some of the costs associated with fire episodes, our results suggest that insurance does little to improve the adverse effects on property values,” the report said.
While wildfires affect homes across the spectrum of values, many luxury homes in California tend to be located in areas particularly vulnerable to the threat of fire.
“From my experience, the high-end homes tend to be up in the hills,” said Ari Weintrub, a real estate agent with Sotheby’s in Los Angeles. “It’s up and removed from down below.”
That puts them in exposed, vegetated areas where brush or forest fires are a hazard, he said.
While the effect of wildfire risk on home values is minimal for now, it could grow over time, the report warns. “This pattern may become stronger in years to come if residential construction continues to expand into areas with higher fire risk and if trends in wildfire severity continue.”
