Honesty the best policy when dealing with insurers

Aussies on the hunt for a cheap car insurance policy may be tempted to bend the truth in order to lower their premiums, but this could prove a disastrous mistake.

Lowering monthly payments by misinforming insurance companies may seem like a good idea at the time, but all the money could be wasted if the lies are discovered as it could result in claims being rejected and policies voided.

This could mean that wrong information given to make a quick saving in the short-term could prove extremely costly further down the line if insurers get wind of it.

Aussies looking to lower their premiums may want to consider taking other steps, such as comparing car insurance online to find the best deal.

Other measures that might result in smaller payments include fitting additional security features to vehicles and reducing the amount of driving done in the automobile.

Michael Case, manager of vehicle engineering at RACV, recently observed that insurance should be considered when choosing which car to purchase, as it is important to get the "whole picture" when out shopping.

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