Insurance in blackjack is a side bet offered when the dealer shows an ace. It allows players to protect themselves against the possibility of the dealer having a natural blackjack. The bet costs half your original wager and pays 2:1 if the dealer does have blackjack.
While insurance may seem like a smart safety net, it’s generally not recommended for most players. Over time, this bet increases the house edge and reduces expected value. This guide explains how insurance works and when, if ever, it might be worth considering.
When the dealer reveals an ace, they will ask if players want to take insurance. You can place a side bet equal to half your original stake. If the dealer’s hole card is a 10-value card, completing a blackjack, the insurance bet wins and pays 2:1.
For example, if you bet $20 and the dealer shows an ace, you can place a $10 insurance bet. If the dealer has blackjack, you lose your $20 main bet but win $20 on insurance, breaking even. However, if the dealer doesn’t have blackjack, you lose the insurance bet and play continues.
The odds of the dealer having a 10-value card are less than one in three, making insurance a losing bet in the long run. Since only four of the thirteen card values are worth 10, the true odds don’t justify the 2:1 payout. This creates a house edge of about 7% on the insurance bet.
Even skilled players using card counting might only occasionally find situations where insurance is profitable—such as when many 10s remain in the deck. For casual players, it’s best to decline insurance every time to maintain better overall odds.
Many players believe insurance 'protects' their hand or guarantees a win if the dealer has blackjack. In reality, it’s a separate bet with poor odds. Some think it’s part of good strategy, especially with a strong hand like 20, but this is a myth.
Even if you have a natural blackjack yourself, taking 'even money'—a form of insurance—reduces your potential payout from 3:2 to 1:1. Over time, this costs you money. Avoiding insurance consistently leads to better bankroll management.
Is insurance ever a good bet in blackjack?
Only in rare cases, such as when card counting shows a high concentration of 10-value cards. For most players, insurance is not a profitable long-term bet and should be avoided.
What is 'even money' in blackjack?
Even money is offered when you have blackjack and the dealer shows an ace. It guarantees a 1:1 payout instead of the usual 3:2, effectively taking insurance. It’s not recommended for long-term play.
Does insurance affect the house edge?
Yes, taking insurance increases the house edge significantly. It’s one of the worst bets in the game, with a house advantage of around 7% under standard conditions.
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