Behavioral Economics and Auto Insurance: The Role of Biases and Heuristics

ABSTRACT Objective: this paper analyzes how framing, anchoring, and certainty effects may affect the behavior of consumer auto insurance. Methods: an experiment was carried out, with face-to-face application six versions a questionnaire 14 questions, for 163 respondents from educational institution. Questions were prepared to analyze existence framing effect, anchoring in addition deductible effect (present several insurance products). The theoretical framework is behavioral economics. Results: younger people, singles, men are more prone risk. Although findings general corroborate evidence literature, results contrary expectations. payment increased respondents’ risk aversion. Conclusions: biases heuristics can cause purchase occur non-optimal way. Knowledge decision-making process important insurers consumers. It also relevant regulators, order subsidize measures aimed at market efficiency protection, through design appropriate choice architecture.