diff --git a/tests/test_types.py b/tests/test_types.py
index 9c587ea1..41d0f10a 100644
--- a/tests/test_types.py
+++ b/tests/test_types.py
@@ -11,6 +11,7 @@ def test_rules_names_list():
 
 def test_update_settings():
     settings = Settings({'key': 'val'})
-    new_settings = settings.update(key='new-val')
-    assert new_settings.key == 'new-val'
+    new_settings = settings.update(key='new-val', unset='unset-value')
+    assert new_settings.key == 'val'
+    assert new_settings.unset == 'unset-value'
     assert settings.key == 'val'
diff --git a/tests/test_utils.py b/tests/test_utils.py
index 31b013ec..c31d91ad 100644
--- a/tests/test_utils.py
+++ b/tests/test_utils.py
@@ -9,7 +9,8 @@ from tests.utils import Command
 
 @pytest.mark.parametrize('override, old, new', [
     ({'key': 'val'}, {}, {'key': 'val'}),
-    ({'key': 'new-val'}, {'key': 'val'}, {'key': 'new-val'})])
+    ({'key': 'new-val'}, {'key': 'val'}, {'key': 'val'}),
+    ({'key': 'new-val', 'unset': 'unset'}, {'key': 'val'}, {'key': 'val', 'unset': 'unset'})])
 def test_wrap_settings(override, old, new):
     fn = lambda _, settings: settings
     assert wrap_settings(override)(fn)(None, Settings(old)) == new
diff --git a/thefuck/types.py b/thefuck/types.py
index cc481381..2e5b41af 100644
--- a/thefuck/types.py
+++ b/thefuck/types.py
@@ -23,7 +23,9 @@ class Settings(dict):
         return self.get(item)
 
     def update(self, **kwargs):
-        """Returns new settings with new values from `kwargs`."""
-        conf = dict(self)
-        conf.update(kwargs)
+        """
+        Returns new settings with values from `kwargs` for unset settings.
+        """
+        conf = dict(kwargs)
+        conf.update(self)
         return Settings(conf)