Research has revealed that nearly one in four Brits (24%) admit they have intentionally lied when applying for a personal finance product, such as car insurance.
The figures from Go.Compare show that up to 13 million Brits may have lied to their financial provides – and even ‘small’ lies can be classed as fraud.
Among those who admitted dishonesty, the most commonly lied-about product was car insurance (7%).
In second place was credit card applications (6%), followed by home insurance (6%), travel insurance (5%) and life insurance (5%).
A significant number of Brits also lied when taking out health insurance (4%), pet insurance (4%), mortgages (4%), personal loans (3%), car finance or leasing (3%), and gadget insurance (3%).
The common porky pies Brits admitted to telling include lying about their income, how they intend to use the product, and the value of their property.
The findings suggest many consumers are trying to make themselves appear lower risk, without realising that even small inaccuracies could mean that they’re breaking the law.
Go.Compare warns that misleading a lender or insurer can have serious financial or legal consequences – as any mistakes made knowingly can be classed as fraud.
The potential ramifications may include declined applications, cancelled policies, payouts being refused, difficulty securing credit in future, and potential legal ramifications if fraud is identified.
These are the most comment lies Brits tell which could mean that they’re breaking the law.
- 21% lied about their income
- 16% lied about how they intended to use the product
- 16% lied about the value of their property or its contents
- 16% gave incorrect details about their home
- 16% gave incorrect details about their vehicle
- 15% gave incorrect personal details such as age or medical conditions
- 14% lied about their profession or job title
- 12% lied about lifestyle habits such as smoking or alcohol intake
- 12% gave incorrect details about their pet
- 11% lied about their address
- 11% lied about their marital status or number of dependents
- 10% gave a false claims history
- 10% gave a false conviction history
Tom Banks, Go.Compare car insurance spokesperson, said: “Our research shows that a shocking number of Brits are sneaking false information into their financial product applications.
“Common lies Brits tell include how much they earn, what the product is being used for, personal details like age or medical conditions, and their occupation.
“The quotes we receive from lenders and insurers reflect our personal details and circumstances – which come together to form a unique risk profile.
“Lying on your personal finance applications, whether it’s a big lie or just a small change, is never a good idea.
“Any statements you knowingly make that are untrue can be classed as fraud, and in the case of insurance policies could leave you without cover – or a payout – when you need it most.”