As many as one in four consumers clients feel that it’s acceptable to lie on their policy applications for auto and life insurance. That should be concerning for insurance agents watching their error and omissions exposure, but there are some demographic trends that shed some light on the situation.
The data – presented in an online Harris Poll commissioned by NerdWallet – reflect a growing willingness among Americans to bend the truth when it comes to financial matters. Researchers asked 2,115 adults to rate eight such lies on a scale of acceptability, and the results vary according to gender, age, and student status.
Overall, men were much more likely than women to deem it acceptable to lie on insurance applications. A full 25% of men and 15% of women say it is acceptable to lie about the number of miles driven each year in order to qualify for lower car insurance rates. Another 22% of men and 12% of women say it is okay to lie about smoking marijuana on life insurance applications.
When it comes to age, Americans 65 and older are significantly less likely to say that financial dishonesty is acceptable. Just 7% of this demographic think it’s acceptable to lie about annual mileage, as opposed to 23% of Americans ages 18 to 64.
Unemployed people also feel it is less acceptable to lie for a financial break. Only 15% of unemployed Americans say it’s fine to lie about annual mileage, and just 12% say it’s okay to omit marijuana use on a life insurance application.
On the other hand, unmarried people and students are both more likely to say financial lies are acceptable. About 20% of unmarried Americans say it’s okay to fib about marijuana use in order to receive lower life insurance rates, versus 13% of unmarried Americans, and 29% of students say lying about annual mileage is acceptable.
NerdWallet pointed out that these trends may not translate to actual action, however.
“Acceptability can be interpreted in different ways,” said David Livington Smith, a philosophy professor at the University of New England. “You might think something is morally acceptable, without it being something you would actually do.”
