Insurance with Blackjack

How Insurance in Blackjack Works

When playing blackjack, you might notice the option to place an insurance bet when the dealer's upcard is an Ace. This side bet allows you to wager half of your original bet, paying 2:1 if the dealer has a blackjack. Essentially, you're betting that the dealer's hole card is a ten-value card.

It's important to understand that insurance bets are independent of your main hand. Even if you have a strong hand, like a 20, taking insurance is a separate wager on the dealer having blackjack. The odds are not in your favor; the dealer will have a blackjack less than one-third of the time. Therefore, many experienced players advise against taking insurance, as it increases the house edge and can lead to greater losses over time.

What Happens When You Win or Lose a Blackjack Insurance Side Bet?

If you place an insurance bet and the dealer's hole card is a ten, completing a blackjack, your insurance bet wins, paying 2:1. However, you'll lose your original bet unless you also have a blackjack, resulting in a push. If the dealer doesn't have a blackjack, you lose the insurance bet, and the game proceeds with your original wager.

For example, if you bet $20 and take a $10 insurance bet, if the dealer has blackjack, you lose your $20 main bet but win $20 from the insurance bet, breaking even. If the dealer does not have blackjack, you lose the $10 insurance bet but continue playing with your main hand.

How Blackjack Insurance Bets Affect the House Edge

The house edge increases significantly when players opt for the insurance bet. While standard blackjack strategies can keep the house edge below 1%, taking insurance raises it to approximately 5.8% on a single-deck game and 7.5% on an eight-deck game.

The probability of the dealer getting a blackjack after showing an Ace is around 30%. This is slightly lower than the break-even probability required to make the insurance bet profitable. Given the unfavorable odds, most experts recommend avoiding it unless you are an experienced card counter who can track the deck composition.

Advanced Strategies for the Insurance Bet

Card Counting Techniques

Skilled players who can track the number of ten-value cards remaining in the deck may justify taking insurance in rare cases. Systems like Hi-Lo and Omega II allow players to determine whether taking insurance is mathematically favorable.

Variance and Risk Management

Taking insurance consistently can lead to a drained bankroll. Players should evaluate how much they are willing to risk on side bets versus standard blackjack wagers.

Insurance Bet Odds

The odds of winning an insurance bet depend on the number of decks used and the ratio of ten-value cards remaining. In a single-deck game, the probability of the dealer's hole card being a ten is about 30%. In multi-deck games, this probability slightly decreases.

Most online blackjack games use multiple decks and shuffle them frequently, eliminating the advantage of tracking cards. Because of this, the insurance bet is usually not recommended unless playing in a live dealer setting with active card counting.

Final Thoughts on Blackjack Insurance Bets

Blackjack insurance bets are generally not recommended for casual players. The house edge is higher than standard bets, and the probability of winning is not in your favor.

Only skilled card counters can sometimes make insurance bets profitable. For most players, it's best to focus on basic blackjack strategies that improve your odds rather than risk money on side bets like insurance.

Frequently Asked Questions About the Blackjack Insurance Bet