Despite the intense competition in the auto insurance market, there are currently only a few well-founded insights into the preference and decision-making behavior of auto comprehensive insurance policyholders, which would allow insurance companies to consistently and distinctly align with the diverse needs of customers.

Markus Guthier examines three decision models using expected utility theory, cumulative prospect theory, and conjoint analysis, which can represent the preference and decision-making behavior of auto insurance policyholders. In his empirical analysis, the author investigates auto comprehensive insurance decisions, estimates the decision models at the individual level, and compares their predictive quality. A preference-based segmentation reveals that different customer segments exist, leading to implications for marketing strategies.