diff --git a/src/main/java/org/codehaus/mojo/versions/utils/SegmentUtils.java b/src/main/java/org/codehaus/mojo/versions/utils/SegmentUtils.java
index 8b262ecf98..1331890d8e 100644
--- a/src/main/java/org/codehaus/mojo/versions/utils/SegmentUtils.java
+++ b/src/main/java/org/codehaus/mojo/versions/utils/SegmentUtils.java
@@ -77,7 +77,7 @@ public static Optional<Segment> determineUnchangedSegment( boolean allowMajorUpd
             log.info( "Assuming allowMajorUpdates false because allowMinorUpdates is false." );
         }
 
-        Optional<Segment> unchangedSegment = allowMajorUpdates && allowMinorUpdates
+        Optional<Segment> unchangedSegment = allowMajorUpdates && allowMinorUpdates && allowIncrementalUpdates
                 ? empty()
                 : allowMinorUpdates && allowIncrementalUpdates
                     ? of( MAJOR )
diff --git a/src/test/java/org/codehaus/mojo/versions/utils/SegmentUtilsTest.java b/src/test/java/org/codehaus/mojo/versions/utils/SegmentUtilsTest.java
new file mode 100644
index 0000000000..4170e2dc7e
--- /dev/null
+++ b/src/test/java/org/codehaus/mojo/versions/utils/SegmentUtilsTest.java
@@ -0,0 +1,70 @@
+package org.codehaus.mojo.versions.utils;
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+import org.junit.Test;
+
+import static java.util.Optional.empty;
+import static java.util.Optional.of;
+import static org.codehaus.mojo.versions.api.Segment.INCREMENTAL;
+import static org.codehaus.mojo.versions.api.Segment.MAJOR;
+import static org.codehaus.mojo.versions.api.Segment.MINOR;
+import static org.codehaus.mojo.versions.utils.SegmentUtils.determineUnchangedSegment;
+import static org.hamcrest.MatcherAssert.assertThat;
+import static org.hamcrest.Matchers.is;
+
+/**
+ * Unit tests for {@link SegmentUtils}
+ */
+public class SegmentUtilsTest
+{
+    @Test
+    public void testIncremental()
+    {
+        assertThat( determineUnchangedSegment( false, false, false, null ),
+                is( of( INCREMENTAL ) ) );
+        assertThat( determineUnchangedSegment( true, false, false, null ),
+                is( of( INCREMENTAL ) ) );
+        assertThat( determineUnchangedSegment( true, true, false, null ),
+                is( of( INCREMENTAL ) ) );
+    }
+
+    @Test
+    public void testMinor()
+    {
+        assertThat( determineUnchangedSegment( false, false, true, null ),
+                is( of( MINOR ) ) );
+        assertThat( determineUnchangedSegment( true, false, true, null ),
+                is( of( MINOR ) ) );
+    }
+
+    @Test
+    public void testMajor()
+    {
+        assertThat( determineUnchangedSegment( false, true, true, null ),
+                is( of( MAJOR ) ) );
+    }
+
+    @Test
+    public void testEmpty()
+    {
+        assertThat( determineUnchangedSegment( true, true, true, null ),
+                is( empty() ) );
+    }
+}