Paul Sanchez
Shared insurance is a type of insurance coverage that protects multiple individuals or entities under a single policy. It is commonly used in various contexts, such as shared car insurance for a shared vehicle and shared insured accounts in credit unions. In the case of shared car insurance, it is important to understand the specifics of the insurance company's policy, as well as state-specific regulations. For shared insured accounts in credit unions, the National Credit Union Share Insurance Fund (NCUSIF) provides protection for members' deposits in federally insured credit unions, with each member typically insured for up to $250,000. This insurance coverage is administered by the National Credit Union Administration (NCUA) and protects members' savings in the event of credit union failure.
| Characteristics | Values |
|---|---|
| What is insured? | Members' savings in federally insured credit unions, including deposits in a share draft account, share savings account, or time deposit such as a share certificate. |
| Who administers the insurance? | The National Credit Union Administration (NCUA) |
| Who does the insurance cover? | All members of the credit union. |
| How much does the insurance cover? | Up to $250,000 per member. |
| What types of accounts are covered? | Single Ownership Accounts, Joint Ownership Accounts, IRAs and Other Certain Retirement Accounts, Revocable Trust Accounts, and Irrevocable Trust Accounts. |
| Are there any exclusions? | The insurance does not cover digital assets, cryptocurrencies, stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities. |
| What happens if the credit union fails? | The insurance covers members' accounts dollar-for-dollar up to the insurance limit, including principal and posted dividends through the date of the failure. |
| How can members confirm their credit union is federally insured? | By using the NCUA's Credit Union Locator tool or checking for the official NCUA insurance sign at each teller station and on the credit union's website. |
| What if members have questions about their insurance coverage? | They can call 1.800.755.1030 or send an email to [email protected] |
| Can members share insurance with someone else? | Yes, in the case of joint ownership accounts or shared vehicle insurance. |
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What You'll Learn
Share insurance coverage limits
If a couple has joint accounts at the same insured credit union, each co-owner's share is added together and insured up to $250,000 per owner, providing up to $500,000 in coverage for the couple's joint accounts. For example, if John and Mary have three joint accounts totalling $600,000 at a federally insured credit union, each co-owner's share of each joint account is considered equal unless otherwise stated. In this case, John and Mary each own $300,000 in the joint account category, putting them $100,000 over the insurance limit. Mary's ownership share in all joint accounts equals $300,000, so her coverage in the joint ownership category is limited to $250,000, leaving $50,000 uninsured.
The NCUA's share insurance coverage applies to accounts such as share drafts, regular shares, share certificates, and certain other accounts offered by a federally insured credit union. It is important to note that the NCUA does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if these investment or insurance products are sold at a federally insured credit union. Additionally, the NCUA's share insurance does not cover digital assets or cryptocurrencies.
To calculate the amount of coverage provided by share insurance, members can use the NCUA's Share Insurance Estimator, which is available on the MyCreditUnion.gov website. This tool can be used for personal, business, or government accounts, and it includes an extensive glossary of terms and frequently asked questions. The estimator bases its computations on the rules in effect as of May 2013 and will be updated by the NCUA in the event of any statutory or regulatory changes.
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Credit union requirements
Credit unions are cooperatives, meaning they are member-owned and operated. Credit unions need a charter, or a license to operate, from either the National Credit Union Administration or a state credit union regulator. The federal government and state governments have different chartering rules and requirements.
To join a credit union, you must meet certain eligibility requirements, which vary depending on the organization. Your eligibility may depend on your location, occupation, or association with certain organizations. For example, Navy Federal Credit Union requires documentation verifying your status as an active-duty or retired service member in the armed forces. Some credit unions have open membership requirements, meaning anyone can join as long as they meet certain criteria, such as depositing a certain amount of money into a new account or joining a particular organization.
Once you've verified your eligibility, you'll need to provide personal information such as your name, date of birth, and contact information. You'll also need to provide identification, such as a driver's license or passport, and your Social Security number or tax identification number.
Credit unions offer a range of personal banking products, including savings and checking accounts, loans, and share certificates. Deposit accounts at credit unions are called "share accounts" because members own a share of the credit union. These share accounts are insured by the National Credit Union Share Insurance Fund (NCUSIF), which protects members against losses if a federally insured credit union fails. Each member has at least $250,000 in total coverage for their share accounts. Federally chartered credit unions are regulated and insured by the NCUSIF, which is backed by the full faith and credit of the US government.
It's important to note that the NCUSIF does not cover digital assets or cryptocurrencies, nor does it insure safe deposit boxes or their contents. Members should also be aware that credit unions may offer investment and insurance products that are not insured by the Share Insurance Fund and are subject to investment risks.
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Share insurance rules for trust accounts
Share insurance covers members' accounts at each federally insured credit union. This includes the principal and any posted dividends up to the insurance limit. Single Ownership Accounts are insured up to $250,000 per member-owner, while Joint Ownership Accounts are insured up to $250,000 per owner. Revocable Trust Accounts are insured up to $250,000 for each eligible beneficiary, while Irrevocable Trust Accounts are also insured up to $250,000 for each beneficiary.
Coverdell Education Savings Accounts, formerly known as education IRAs, are insured as irrevocable trust accounts. To be eligible for insurance coverage, the qualifying beneficiary must be a natural person, or a charitable organisation or non-profit entity under the Internal Revenue Code.
The National Credit Union Administration Board has approved a final rule simplifying share insurance regulations by establishing a "trust accounts" category. This rule, which comes into effect on December 1, 2026, aligns the Share Insurance Fund coverage provided to federally insured credit union members' revocable and irrevocable trust accounts with the coverage offered to consumers who maintain such accounts at federally insured banks.
The NCUA does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities. It also does not insure safe deposit boxes or their contents, or digital assets such as cryptocurrencies.
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Sharing car insurance
Car-sharing services like Zipcar, Turo, Enterprise Car Share, Getaround, and JustShareIt provide insurance coverage for their vehicles. This insurance typically includes at least the minimum level of car insurance required by the state, such as personal injury protection (PIP) and uninsured/underinsured motorist coverage. Some companies also offer additional coverage options, such as comprehensive, collision, and liability insurance. It's important to carefully review the insurance policies offered by these companies, as there may be limitations and exclusions. For example, most car-sharing agreements allow the company to deny claims if the vehicle is not adequately maintained.
When using a car-sharing service, your primary auto insurance protection will typically come from the car-sharing company's coverage. However, it's important to note that this coverage may only apply during the rental period. If you're renting out your own car through a car-sharing service, your personal car insurance policy may not cover you, and some insurers may even deny you coverage or drop your policy if they learn that you're renting out your vehicle. In some cases, you may need to purchase additional insurance from the car-sharing service or a third party to fill in any gaps in coverage.
If you're renting a car through a car-sharing service, your personal auto insurance policy may extend to the rental vehicle, depending on the coverages, limits, and deductibles associated with your policy. This means that if you have liability, collision, and comprehensive coverage on your personal policy, those coverages may also apply when you're driving a rented car. However, it's important to check with your insurance company, as some policies may specifically exclude rental vehicles. Additionally, the level of coverage provided by your personal policy may be lower for a rental car than for your own vehicle.
Some car-sharing platforms, such as Roamly, offer insurance products specifically designed for car-sharing activities. These policies can provide continuous protection for your vehicle, even during periods when it's not being rented out. They can also help fill in gaps in coverage that may exist with personal insurance policies or the insurance provided by the car-sharing platform. Roamly's policies cover fleets of two or more vehicles and include fleet management software to track bookings and monitor your fleet's performance.
When participating in car-sharing, it's crucial to carefully review the insurance policies offered by both the car-sharing companies and your personal insurance provider. Understand the limitations and exclusions of each policy and consider purchasing additional coverage if necessary to ensure adequate protection.
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NCUA share insurance coverage
The National Credit Union Administration (NCUA) insures member deposits. The NCUA is an independent federal agency that examines and supervises federally insured credit unions. The NCUA also administers the National Credit Union Share Insurance Fund (NCUSIF), which was established by Congress in 1970 and insures member deposits in all federal credit unions nationwide, as well as in qualifying state-chartered credit unions. The NCUSIF is backed by the full faith and credit of the United States government.
Federally insured credit unions are required to display the official NCUA insurance sign at each teller station, on their websites, and anywhere else they accept deposits or open accounts. Credit union members are automatically covered by share insurance when they join a federally insured credit union. The Share Insurance Fund insures individual accounts at federally insured credit unions up to $250,000, and a member's interest in all joint accounts combined is insured up to $250,000. The fund also separately protects IRA and KEOGH retirement accounts up to $250,000.
The NCUA does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if these investment or insurance products are sold at a federally insured credit union. Additionally, the NCUA does not insure safe deposit boxes or their contents, and it does not insure digital assets such as cryptocurrencies.
To help members understand their share insurance coverage, the NCUA provides a Share Insurance Estimator on its website, MyCreditUnion.gov. This tool allows members to calculate the insurance coverage of their share accounts, including share draft accounts (checking accounts) and share savings accounts. The estimator is designed to give an accurate share insurance calculation, assuming the information is entered correctly. Members can also call the NCUA or send an email to [email protected] with any questions about their share insurance coverage.
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Frequently asked questions
Share insurance is a federal insurance fund backed by the full faith and credit of the United States government. It insures member savings in federally insured credit unions, which account for about 98% of all credit unions operating in the country.
Share insurance covers members' accounts at each federally insured credit union, dollar-for-dollar, including principal and any posted dividends up to the insurance limit. This coverage also applies to non-member deposits when permitted by law.
Each credit union member has at least $250,000 in total coverage for share accounts held at a federally insured credit union. This includes Single Ownership Accounts, Joint Ownership Accounts, IRAs and Other Certain Retirement Accounts, Revocable Trust Accounts, and Irrevocable Trust Accounts.
