diff --git a/NEWS b/NEWS
index 04a3d5a77..6bd9ece3f 100644
--- a/NEWS
+++ b/NEWS
@@ -1,3 +1,7 @@
+1.1.8
+ * #39: Fix to make /etc/borgmatic/config.yaml optional rather than required when using the default
+   config paths.
+
 1.1.7
 
  * #28: Add "archive_name_format" to configuration for customizing archive names.
diff --git a/borgmatic/commands/borgmatic.py b/borgmatic/commands/borgmatic.py
index 5085b65b1..2fdff34ad 100644
--- a/borgmatic/commands/borgmatic.py
+++ b/borgmatic/commands/borgmatic.py
@@ -9,8 +9,6 @@ from borgmatic.config import collect, convert, validate
 
 
 LEGACY_CONFIG_PATH = '/etc/borgmatic/config'
-DEFAULT_CONFIG_PATHS = ['/etc/borgmatic/config.yaml', '/etc/borgmatic.d']
-DEFAULT_EXCLUDES_PATH = '/etc/borgmatic/excludes'
 
 
 def parse_arguments(*arguments):
@@ -30,8 +28,8 @@ def parse_arguments(*arguments):
         '-c', '--config',
         nargs='+',
         dest='config_paths',
-        default=DEFAULT_CONFIG_PATHS,
-        help='Configuration filenames or directories, defaults to: {}'.format(' '.join(DEFAULT_CONFIG_PATHS)),
+        default=collect.DEFAULT_CONFIG_PATHS,
+        help='Configuration filenames or directories, defaults to: {}'.format(' '.join(collect.DEFAULT_CONFIG_PATHS)),
     )
     parser.add_argument(
         '--excludes',
diff --git a/borgmatic/config/collect.py b/borgmatic/config/collect.py
index dbe6f2fe7..4b8b88e18 100644
--- a/borgmatic/config/collect.py
+++ b/borgmatic/config/collect.py
@@ -1,6 +1,9 @@
 import os
 
 
+DEFAULT_CONFIG_PATHS = ['/etc/borgmatic/config.yaml', '/etc/borgmatic.d']
+
+
 def collect_config_filenames(config_paths):
     '''
     Given a sequence of config paths, both filenames and directories, resolve that to just an
@@ -14,7 +17,7 @@ def collect_config_filenames(config_paths):
     for path in config_paths:
         exists = os.path.exists(path)
 
-        if os.path.realpath(path) == '/etc/borgmatic.d' and not exists:
+        if os.path.realpath(path) in DEFAULT_CONFIG_PATHS and not exists:
             continue
 
         if not os.path.isdir(path) or not exists:
diff --git a/borgmatic/tests/integration/commands/test_borgmatic.py b/borgmatic/tests/integration/commands/test_borgmatic.py
index 2b82ecfb1..1d6aa5c97 100644
--- a/borgmatic/tests/integration/commands/test_borgmatic.py
+++ b/borgmatic/tests/integration/commands/test_borgmatic.py
@@ -9,7 +9,7 @@ from borgmatic.commands import borgmatic as module
 def test_parse_arguments_with_no_arguments_uses_defaults():
     parser = module.parse_arguments()
 
-    assert parser.config_paths == module.DEFAULT_CONFIG_PATHS
+    assert parser.config_paths == module.collect.DEFAULT_CONFIG_PATHS
     assert parser.excludes_filename == None
     assert parser.verbosity is None
 
@@ -32,7 +32,7 @@ def test_parse_arguments_with_multiple_config_paths_parses_as_list():
 def test_parse_arguments_with_verbosity_flag_overrides_default():
     parser = module.parse_arguments('--verbosity', '1')
 
-    assert parser.config_paths == module.DEFAULT_CONFIG_PATHS
+    assert parser.config_paths == module.collect.DEFAULT_CONFIG_PATHS
     assert parser.excludes_filename == None
     assert parser.verbosity == 1
 
diff --git a/borgmatic/tests/unit/config/test_collect.py b/borgmatic/tests/unit/config/test_collect.py
index 2adee63e0..c2572c8c5 100644
--- a/borgmatic/tests/unit/config/test_collect.py
+++ b/borgmatic/tests/unit/config/test_collect.py
@@ -32,6 +32,19 @@ def test_collect_config_filenames_collects_files_from_given_directories_and_igno
     )
 
 
+def test_collect_config_filenames_skips_etc_borgmatic_config_dot_yaml_if_it_does_not_exist():
+    config_paths = ('config.yaml', '/etc/borgmatic/config.yaml')
+    mock_path = flexmock(module.os.path)
+    mock_path.should_receive('exists').with_args('config.yaml').and_return(True)
+    mock_path.should_receive('exists').with_args('/etc/borgmatic/config.yaml').and_return(False)
+    mock_path.should_receive('isdir').with_args('config.yaml').and_return(False)
+    mock_path.should_receive('isdir').with_args('/etc/borgmatic/config.yaml').and_return(True)
+
+    config_filenames = tuple(module.collect_config_filenames(config_paths))
+
+    assert config_filenames == ('config.yaml',)
+
+
 def test_collect_config_filenames_skips_etc_borgmatic_dot_d_if_it_does_not_exist():
     config_paths = ('config.yaml', '/etc/borgmatic.d')
     mock_path = flexmock(module.os.path)
@@ -45,7 +58,7 @@ def test_collect_config_filenames_skips_etc_borgmatic_dot_d_if_it_does_not_exist
     assert config_filenames == ('config.yaml',)
 
 
-def test_collect_config_filenames_includes_directory_if_it_does_not_exist():
+def test_collect_config_filenames_includes_other_directory_if_it_does_not_exist():
     config_paths = ('config.yaml', '/my/directory')
     mock_path = flexmock(module.os.path)
     mock_path.should_receive('exists').with_args('config.yaml').and_return(True)
diff --git a/setup.py b/setup.py
index bd939266c..d3b8307e6 100644
--- a/setup.py
+++ b/setup.py
@@ -1,7 +1,7 @@
 from setuptools import setup, find_packages
 
 
-VERSION = '1.1.7'
+VERSION = '1.1.8'
 
 
 setup(