Auto Insurance Fraud: An Ethical Grey Area?

Over the past few years, public outrage over auto insurance fraud has become increasingly lax. According to a study by the Coalition Against Insurance Fraud, in 1997, 91 percent of people thought it unethical to misrepresent facts on an insurance application to get a lower premium. Today, only 82 percent believe the same.
The Coalition's study also shows that 4 out of 5 Americans think insurance fraud in general is unethical, but 1 out of 5 (approximately 45 million people) believe defrauding insurance companies is acceptable under certain circumstances.
Public opinion of the morality of other fraudulent acts such as tax and credit card fraud has changed as well, the Coalition points out. People are especially willing to turn a blind eye to fraud when the person committing it is a friend or relative.
Some of those who contemplate auto insurance fraud try to rationalize their decisions by looking at the circumstances of their plan. They will consider if a type of fraud is commonly committed by others, or if it hurts anyone. If they believe the only ones affected by their actions is a faceless insurance company, they are more likely to go through with the insurance fraud when they would normally never commit other crimes.

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