Gen Z Is Lying to Insurance Companies

Gen Z isn't above lying to insurance companies to get better rates, and they feel the least guilty about it.

Source: Newsweek | Published on May 16, 2024

Gen Z don't feel guilty about lying on insurance apps

Gen Z isn’t above lying to insurance companies to get better rates, and they feel the least guilty about it.

In NerdWallet’s 2024 Insurance Dishonesty Report, younger Americans were significantly more likely to say insurance lies are acceptable.

Altogether, around one in five, or 21 percent, of Americans admitted to intentionally providing incorrect information on an insurance application, and Gen Z-ers were leading the pack.

The generation, which entails those aged 18 to 27, saw 42 percent admit to lying on insurance applications. That was a big jump from millennials, who only lied 28 percent of the time. Meanwhile, Gen X and Baby Boomers had significantly lower rates of lying at 17 and 6 percent respectively.

Most of the survey respondents who indicated they lied on their insurance applications did so for financial reasons, with 45 percent saying it’s because they want to save money and 38 percent saying they lied because rates have increased too much.

“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,” said Melissa Lambarena, a personal finance expert and writer at NerdWallet, in a statement. “Instead, find savings by asking your insurance provider about potential discounts, and shop around for better rates.”

Not every lie was created equal, however. Gen Z, and those lying on insurance more broadly, said lying about the number of miles you drive yearly was okay 19 percent of the time. But less were in favor of lying about smoking tobacco (15 percent) or health data (14 percent).

Around 23 percent of men said it was acceptable to lie about the number of miles they drive each year to get lower rates, while only 15 percent of women said the same.

Altogether, the numbers may reflect an ongoing car insurance crisis that is slowly pushing more and more Americans to drive on the road without insurance. Roughly 17 percent said it was fine to lie because they wouldn’t be able to get coverage otherwise.

Many might believe there are little to no consequences for lying about their lifestyles on the insurance forms, but doing so can put you at risk of your application being rejected or even criminal charges, depending on how severe your lie is.

“Lying in an insurance policy introduces a world of hurt,” analyst Michael Giusti told Newsweek. “You don’t want to go down that road, even if it may mean saving a little coin on the premiums.”

Nationally, the survey found 11 percent of Americans don’t have insurance, and the latest inflation numbers might show why. The latest consumer price index report showed auto insurance rates climbed 1.8 percent in April.

“While you might be tempted to lie if it means getting a lower rate, it’s not worth the potential risks if you get caught,” says Lambarena.

There might be larger ramifications to lying on your insurance application as well. Kevin Thompson, a finance expert and the founder/CEO of 9i Capital Group, said actuaries will begin to calculate the actual price of insurance based on more applicants lying if the trend continues.

“If it is determined that a large cohort of the individuals may be presenting false information, that new fact will be passed through all people in that cohort being insured, and prices will increase across the board,” Thompson told Newsweek.





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