What is Blackjack Insurance and How Does it Work?

August 15, 2024
5 Minute Read

Blackjack is a fairly simple game to learn how to play, but there are come key strategic decisions to consider as well as some added betting options that players can make as well.

Blackjack insurance is one of those options and this article offers a look at what this side bet is and whether it’s wise to make this bet either at traditional or online casinos. Keep reading to learn all about the insurance bet in this popular casino game.

What Does an Insurance Mean in Blackjack?

A dealer's hand dealing cards on a green blackjack table with chips and cards spread out, highlighting a king and a queen of hearts.

As the blackjack term implies, blackjack insurance is bet to insure against the dealer having a blackjack and is available in most variations of blackjack.

This wager is offered when the dealer has ace for an upcard. In this instance, the dealer will ask players if they want to take insurance. Under most casinos’ blackjack insurance rules, players can bet up to half their original bet.

How Does Blackjack Insurance Work?

Insurance in blackjack is available when the dealer shows an ace upcard. The dealer asks players if they would then like to take insurance. This wager is also available when playing online blackjack.

Players making the bet place their chips on the insurance line located in front of the dealer and running around the table. The dealer will then “peak” at the down card to see if it’s a 10-value card for a blackjack.

If the dealer doesn’t have a blackjack, he will collect the losing insurance bets. If he does have blackjack, the players who made the wager win and the blackjack insurance payout is 2 to 1 – equal to the losing original wager. However, if the player also had a blackjack, that bet would be a push and the player would at least profit on the insurance bet.

When to Take Insurance in Blackjack

So when do players consider making blackjack insurance bets? Here’s a look at a few scenarios.

  • Dealer’s Up Card is an Ace – This is when players are asked if they would like to make the insurance side bet.
  • High Count in Card Counting Systems – A high count when counting cards mean there are more higher-value cards left in the deck and there is a better chance the dealer may have blackjack. In these instance, some strategies may actually say that taking insurance is a good idea based on the math behind the card counting system.
  • Playing with a Specific Betting Strategy – Some players may feel taking insurance on occasion may be wise based on their own blackjack strategy, although that may not align with mathematically-proven basic strategy for blackjack.
  • High Stakes Game with Risk Mitigation Strategy – Some players may feel the need to take insurance to mitigate potential losses in high stakes games, especially when counting cards (see above).
  • Presence of a Significant Number of 10-Value Cards in the Deck – When the remaining portion of the deck rich in high cards, the dealer may have higher odds of hitting blackjack and this might be the best move when considering when to buy insurance in blackjack (see card counting above).

Advantages and Disadvantages of Blackjack Insurance

Close-up of a blackjack hand showing a king of hearts and an ace of clubs on a green casino table, with chips in the background suggesting an ongoing game.

There are some advantages and disadvantages to making insurance bets when you play blackjack. Here is a look at a few blackjack insurance examples.

Advantages

  1. The insurance side bet costs players less. How much is insurance in blackjack? The insurance bet in blackjack traditionally costs half your initial wager.
  2. You will push against the dealer’s blackjack. The blackjack insurance payout is 2 to 1, so you won’t lose money in the hand.
  3. The wager is simple to make and this bet pays a premium of 2 to 1.
  4. If you and the dealer have blackjack, you will push on your initial bet and still profit on the insurance bet.

Disadvantages

There are some major disadvantages when it comes to taking insurance. Here’s a look at a few of those.

  1. A major disadvantage of making blackjack insurance bets is the high house edge. In one of the best casino games with a house edge of 2% or less for players using basic strategy, taking insurance comes with a house edge of around 6%. Most basic blackjack strategy experts advise against making the bet as players will lose money in the long run on this blackjack side bet – it’s simply a bad idea in general.
  2. Taking blackjack insurance can drain much of your blackjack bankroll when taking the wager too much as the odds of the dealer making blackjack are too long to justify because of the high house edge. Insurance betting is usually a losing proposition and the player loses over the long run.

Conclusion

Taking insurance is a side bet option in blackjack games that costs half of the player’s original bet. The wager is available when the dealer’s upcard is an ace.

When making the insurance bet, the player will be paid 2 to 1 if the dealer deals has a blackjack. If the you lose the original bet, you’ll still win on the insurance wager.

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Frequently Asked Questions

Should you take insurance in blackjack?

No, this is a bad bet and you will lose money over time at the blackjack table. It has a bigger house edge than simply playing normal blackjack without taking the bet. This is not a good bet in general.

What does insurance pays 2 to 1 mean?

When playing blackjack, your bet might be $20. If you take the insurance bet, you will wager $10 (half the original bet) based on the blackjack rules for insurance. If the dealer has a blackjack you’ll receive a $20 payout for the insurance bet – $20 for $10 wagered, or 2 to 1 – and lose the original wager.

How much is insurance in blackjack?

This side bet costs players half of their original wager. The dealer will ask if any players want insurance if his upcard is an ace. The wager is also available in online blackjack at sites like Lucky Block Casino.

Tom Middleton

Tom is a crypto gambling expert with more than a decade of experience in the industry and Master’s Degree in Journalism. He has written thoroughly researched guides and reviews for several major publications.

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