In blackjack, a dealer showing an ace can add an unexpected twist to the game. You are then given the option to place an additional bet: Insurance. But what exactly is this insurance bet, when can you win it, and is it a smart choice? Discover how Insurance works, what it pays out and what to consider before placing this side bet when playing at a land-based or online casino.
What Is Insurance in Blackjack?
Insurance is an optional side bet you can place when the dealer’s face-up card is an ace. The bet is separate from your regular blackjack wager. Rather than trying to win directly with your own hand, you are predicting that the dealer’s second card will give them a natural blackjack.
A natural blackjack consists of an ace and a ten-value card as the first two cards. This could be a ten, jack, queen or king. If the dealer has an ace showing, there is a possibility that their hidden card is one of these cards.
The insurance bet is generally available before you continue playing your hand. Whether this option is offered and which conditions apply depend on the rules of the blackjack variant and the casino.
How Does the Insurance Bet Work?
When the dealer shows an ace, the table will usually ask whether you want to take Insurance. You can then place an additional bet, often up to half your original wager. You are not required to do so.
Suppose you have bet €10 on your hand. If Insurance is available, you can generally place an additional €5 at most. The dealer then checks, according to the applicable game procedure, whether they have a natural blackjack.
If the dealer does have blackjack, your Insurance bet wins. If the dealer does not have a natural blackjack, you lose the insurance amount. Your regular blackjack hand is then settled according to the usual rules. The outcome of the insurance bet and that of your hand are therefore separate.
How Much Does Insurance Pay Out?
A winning Insurance bet typically pays 2 to 1. This means you receive twice the insurance amount as winnings, in addition to getting your original insurance stake back.
Suppose you place €5 on Insurance. If the dealer has a natural blackjack, you receive €10 in winnings and get your €5 insurance stake back. You therefore receive €15 in total from this side bet.
If the dealer does not have blackjack, you lose the €5. Your original €10 wager remains in play and is settled according to your hand and the dealer’s hand. You can therefore lose your Insurance bet and still win your regular hand, or vice versa. Always check the payout rules of the variant you are playing.
What Happens If the Dealer Has Blackjack?
If the dealer has a natural blackjack, your regular hand is settled according to the blackjack rules. If you do not have a natural blackjack yourself, you will generally lose your regular wager. A winning Insurance bet offsets part of this loss, but it does not automatically mean you make a profit on the entire round.
Consider an example with a regular bet of €10 and an Insurance bet of €5. If the dealer has blackjack and you do not, you normally lose €10 on your regular hand. The insurance bet pays €10 in winnings, and your €5 insurance stake is returned. In this example, your net result across both bets is a loss of €5.
Is Insurance a Sensible Choice?
Insurance may seem appealing because it offers protection against the possibility of the dealer having blackjack. However, under standard blackjack probabilities, it is generally not a favourable bet for the player. The payout is set at 2 to 1, while the probability of the dealer actually having a natural blackjack is usually not high enough to make these odds favourable in the long run.
The exact probability depends, among other things, on the cards already visible, the number of decks in use and the game rules. Without additional information about the remaining cards, Insurance is generally a bet with a higher expected loss than declining it.
This does not mean you are certain to lose every individual bet. Sometimes the dealer does have blackjack, and the insurance bet wins. The important factor is the average result across many similar situations, rather than the outcome of a single round.
What Is the Difference Between Insurance and Even Money?
Insurance and even money are sometimes confused, but they are not exactly the same. Insurance is a separate side bet you can place when the dealer has an ace showing. Even money may be offered when you have a natural blackjack yourself and the dealer shows an ace.
Does Insurance Affect Your Blackjack Strategy?
Insurance is a separate decision from the choices you make during a regular blackjack hand. Basic strategy focuses on the best action for your hand against the dealer’s face-up card, taking the game rules into account. Insurance should be assessed separately, based on the probability that the dealer has blackjack and the payout offered.
For most players, it is best not to take Insurance automatically whenever the dealer shows an ace. The face-up card provides an indication, but it does not prove that the hidden card has a value of ten.
Frequently Asked Questions
Can You Decline Insurance?
Yes. Insurance is optional. You can skip the additional bet and continue playing according to the regular blackjack rules. Your original wager remains unchanged.
Can You Bet More Than Half Your Original Wager?
Under standard blackjack rules, the Insurance bet is limited to half your original wager at most. The exact limit may depend on the game variant and the casino’s rules.
Do You Always Make Money When You Win Insurance?
No. The insurance bet can pay out even when you lose your regular hand. Your overall result depends on both bets combined. Therefore, consider not only the Insurance payout but also what happens to your original hand.