Insurance Application Dishonesty: Many Consumers Consider It Okay

Admit it, a lot of us either currently lie on applications, or we’ve done so in the past. This includes insurance. NerdWallet put together a survey a few weeks ago and polled over 2,000 adults about how what they say an insurance application.

The results are troubling but not surprising. As we all know, when it comes to insurance, the lies aren’t really just “fibs.”

  • 21% admit to putting incorrect information on an insurance application
  • At 42% Generation Z — those 18 to 27 — are the most likely to lie
  • 28% of millennials — age 28 to 43 — have done so
  • 17% of Generation X — age 44 to 59 — have lied on an insurance application
  • Just 6% of baby boomers — those 60 to 78 — have done it

While a lot of people lie on those applications, not all of us approve.

  • Just 19% say it’s okay to lie about the number of miles driven to get a better auto insurance price
  • Just 14% think it’s okay to lie about their health to get lower life insurance rates

Men are more likely to find lying on such an application to be acceptable than women. As you saw by the numbers above, it’s obvious that Generation Z and millennials think it’s more okay to lie on an insurance application than Generation X or the baby boomers.

And why do we lie? NedWallet writer and personal finance expert, Melissa Lambarena says saving money is the main reason.

  • 45% say they lie to save money
  • 38% lie because rates have gone up so high

“It may not seem like a big deal to lie on an insurance application, but doing so can come with unexpected consequences that can potentially impact your and your family’s well-being,” Lambarena noted and shared the kind good advice any reputable independent agent would give. “Instead, find savings by asking your insurance provider about potential discounts, and shop around for better rates.”

Here’s more detail from the survey on why people lie on insurance applications:

  • To save money — 45%
  • Don’t believe the factor they lie about should be a consideration — 40%
  • Rates have gone up too much — 38%
  • Lie to become eligible for a specific type of policy — 18%
  • Don’t think there is a consequence for lying on an insurance application — 18%
  • If they don’t lie they won’t be able to get coverage — 17%
  • Other reasons — 9%

The difference between men and women:

It’s okay to lie about the number of miles driven each year

  • Men — 23%
  • Women — 15%

It’s okay to lie about pot smoking to get lower life insurance rates

  • Men — 20%
  • Women — 13%

Lying about tobacco habits to get lower life insurance rates is okay

  • Men — 19%
  • Women — 11%

Lying about income to get better life insurance rates and insurance they might not be eligible to get

  • Men — 19%
  • Women — 10%

Lying about doing high risk hobbies to get lower life insurance rates

  • Men — 18%
  • Women — 10%

Not being truthful about health data to get lower life insurance rates

  • Men — 17%
  • Women — 10%

Source link: NerdWallet — https://bit.ly/4cUPFy8

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