Goals and Plans in Protective Decision Making

Many insurance-related decisions appear, at first glance, to be suboptimal. For example, many people pay added premiums that seem excessive to obtain automobile collision insurance with a low deductible. To make matters worse, some decide not to file a claim following a small accident whose cost could largely be reimbursed via this low deductible1: they fear that a claim would lead to increased premiums in the next and succeeding years.