According to a new study by NerdWallet, a personal finance company, one in five people say they have lied on an insurance application to save money.
Melissa Lambarena from Nerdwallet says the number one lie is lying about the number of miles driven each year to save on auto insurance. However, the study included all types of coverage.
“The study found that most people find that lying is unacceptable on an insurance application, but some do. And, of those that believe that lying is okay. Saving money is one of the primary reasons for doing so,” said Melissa.
People also lied about smoking pot to receive lower life insurance rates. That’s followed by being dishonest about smoking tobacco for the same purpose.
Another one is saying you make more money to get more life insurance coverage. Finally, not being honest about participating in high-risk hobbies to get lower life insurance rates.
“Potentially, there’s a possibility that you could get caught and cause a financial burden for yourself and your family. You don’t know what those repercussions will be until you find yourself in that situation,” said Melissa Labarena.
So, who’s doing the lying? According to the study, 42% of Gen Zers admit to intentionally providing incorrect information on an insurance application. 28% of millennials admit to doing the deed, 17% of Gen Xers - and baby boomers are the most honest generation at 6%.
“Well, insurance companies have almost certainly put a lot of time, effort and money into how they do business. So, you might think you found a quick way to save a couple bucks on your monthly costs, but there’s a good chance it’ll come back to bite you later on,” said Melissa Labarena.
Aaron VanTuyl from the Office of the Insurance Commissioner says misrepresenting something with intent to deceive is illegal; in fact, it’s a gross misdemeanor. And, making up claims could cause you to get charged with felonies.
“Fraud cost our state a lot of money. Our criminal Investigations unit handles thousands of referrals every year,” said Aaron VanTuyl.
Making matters worse, liars may get found out when they need the benefits the most when they have a real claim.
It’s better just to tell the truth now and save yourself the worry later.
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