About 1.3 million or 7% of Australians have lied on applications for insurance at some point, a recent finder.com.au study has found.

Gen Y were the main offenders with 17% of them saying that they had lied on an insurance application. At the other end of the spectrum, only 1% of baby boomers said they had been dishonest.

When it came to the types of insurance Aussies were most likely to lie about when filling out an application, motor insurance took the top spot, followed by health insurance and life insurance.

The survey of 2,010 adults found New South Wales is the most dishonest state in the country, with one in 10 of respondents saying that they have lied on an application.

Finder.com.au insurance expert Bessie Hassan said there are ways to lower premiums and save money without resorting to dishonesty.

Some insurance brands offer multi-policy discounts when clients buy more than one policy with them, while it is worth asking for a discount or a more competitive price before switching insurance brands, Ms Hassan said. She added that installing extra security measures could also help to lower home insurance premiums.