Survey finds many are okay with lying to their auto insurer

| Mar 23, 2016 | Property Insurance Issues

Money can make people act very differently than normal. For example, individuals who are normally honest may be tempted to delve into dishonesty when money is involved.

Auto insurance can have a variety of monetary implications attached to it. So, lies related to auto insurance are among the lies individuals may be tempted to tell. A recent survey indicates that individuals may not be terribly reluctant to lie to their auto insurer.

The survey was on various lies related to money. In the survey, 20 percent of respondents said that lying to an auto insurer when it comes to annual mileage in order to get a lower rate is an acceptable type of lie.

Who was most likely to view this kind of auto-insurance-related lie as okay? The survey indicated that:

  • Men were more accepting than women of this type of lie.
  • The 18 to 34 age group was the age group most okay with this type of lie.
  • Students were more likely to be alright with this sort of lie than retirees, the employed and the unemployed.
  • Parents were more likely to say they were okay with this type of lie than non-parents.
  • Unmarried individuals were more accepting than married individuals of this type of lie.

One wonders if this relatively high willingness to lie to an auto insurer goes beyond just mileage-related lies. There are a variety of different insurance-related lies people could tell, such as lies about a claim aimed at maximizing the amount they could receive in relation to the claim.

The potential of claim-related lies is one of the reasons why careful reviews of claims are such a key thing for auto insurers. It can be important for insurers to have review practices that are good at identifying bad claims, such as claims that involve lies.

On the other side of things, it is also important for auto insurers to make sure their claims review practices aren’t prone to denying valid claims. Denying valid claims can expose an insurance company to litigation, which could have serious financial implications. When an auto insurer is accused of denying a valid claim, good legal advice can be a crucial thing for it to have.

Source: NerdWallet, “Survey: Men, Students, Parents Among Those Most Likely to Say Money Lies Are OK,” Elizabeth Renter, March 15, 2016