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Lower insurance costs boost Fuel Capital originations 

Fuel Capital‘s newly lowered insurance requirement have spurred origination growth, Manager of Data and Analytics Blake Henke told Powersports Finance.  

Previously, Fuel was using insurance coverage that was standard in the auto industry. Borrowers were paying $150 to $200 per month, which Fuel learned was “a lot” for its riders, Henke said.  

“We were using an auto liability coverage requirement, which is a bit exorbitant when you think about it for a motorcycle accident,” Henke said. “The damages being caused aren’t anywhere near the value that an automobile accident can cause.” 

Read More: Fuel Capital adds 12 metric brands to program

The lessor lowered its payments to match the motorcycle industry standard, which is “roughly half of the auto standard, Henke said. 

“We have gone down to more of a motorcycle industry standard, whereas we were at the auto standard before,” Henke explained. “We’re seeing a lot of uptick in applications and conversions because it’s a more affordable package.” 

Fuel made the change on June 28 to correspond with the addition of 12 metric brands to its financing program. After the launch, the company broke its record for highest origination volume in a single week, Henke said without specifying. Even with the new brands being financed, most of Fuel’s originations have been for Harley-Davidsons, he noted.  

Matthew Wood

Matt Wood is the Associate Editor of PowerSports Finance, where he is responsible for covering all the latest news, trends, and innovations with powersports lenders and dealerships. Previously, Matt was a writer for Auto Finance News before switching full-time to PowerSports Finance. He is also an experienced entertainment news writer covering pop culture, movies, and TV shows. Matt received his Bachelor’s degree in Communication from Rowan University in New Jersey.

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