What does the principle of “full disclosure” mean?
A. If one does not disclose the “use” and “nature” of your vehicle, any subsequent claim can be denied. For example if your policy states the use of the vehicle is for “pleasure” only, you may be denied coverage if an investigation reveals that you have been using the vehicle for commuting to work on a regular basis. Similarly, if your vehicle has changed in “nature.” Things like (for example) replacing a 4-cylinder engine with a 6-cylinder engine, or a 3-litre engine with a 3.6 litre engine must be reported in writing to the insurance underwriter. Then they may be able to place the vehicle in the appropriate rate group. A new custom steering wheel or monogrammed carpets don’t change the nature of the vehicle.
