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Blackjack Insurance Guide

What Is Insurance In Blackjack?

Insurance in blackjack is a very specific offer made in one situation. Insurance is a side bet that is offered when the dealer’s upcard is revealed to be an Ace. Players are then given the chance to place a second bet which is worth half of the value of their original bet. If the hand is revealed to be blackjack, they will win this bet, and break even. If it is not a blackjack, then the insurance bet is lost.

For example - the player is dealt a 10, 7 hand, and the dealer has an Ace. The player has placed an initial $100 bet. The insurance bet will then cost $50 at odds of 2:1. If the dealer then reveals a 10, J, Q or K, then the initial $100 bet is lost, but the $50 insurance bet wins.

The player will then win $150 and break even. If the dealer reveals a 9, totalling their hand at 20, then the player will lose both bets. If the dealer reveals a card that doesn’t win, the hand will play out as normal, with the player losing the $50 insurance bet.

How Does Insurance Work In Blackjack?

An insurance bet will only be offered to players if the dealer’s upcard is revealed as an Ace. Once the cards have been dealt, the player will see a side-bet appear on the bottom or side of their screen if the dealer shows an Ace. In this situation, the player is basically covering themselves in case the dealer has a blackjack. The insurance bet is effectively a bet that the dealer’s face-down card will be revealed to be a 10, J, Q, or K. The insurance bet will then pay out at 2:1 if the dealer has blackjack.

When To Take Insurance In Blackjack?

In the vast majority of circumstances, the opportunity to take the insurance bet is not a good move. However, there are certain scenarios when taking a blackjack insurance bet can be advantageous. It is worth noting that this is very rare.

In order to know when taking a blackjack insurance bet is a good move, you will need to keep track of the number of 10+ cards that have been dealt. When the dealer has a chance of at least 33.3% or higher of hitting the blackjack, then the insurance bet is worth taking for the player.

This scenario is extremely unlikely though, and it requires paying a lot of close attention to the game, and the game only being played with one deck. In short, there is pretty much never a good time to take an insurance bet in blackjack.

Blackjack Insurance Odds

The exact odds of a blackjack insurance bet paying off will depend on a number of factors. Using a standard deck of cards though with a full number of 10+ value cards in the deck, the odds of the dealer making a blackjack are 9:4. That puts the odds in the favour of the dealer and is a reason many players advise against taking an insurance bet.

The game offers players odds of 2:1 on a winning insurance bet. This means that, when combined with their initial bet, they will break even if the insurance bet wins. Of course, if the insurance bet doesn’t win, and the player loses the initial hand as well, then they will lose all of their money. This is one of the reasons that it is advised not to take an insurance bet, as it requires a very specific outcome purely for a player to break even.

Blackjack Insurance House Edge

In blackjack, the house edge for a standard player sits at around 2%. This can be decreased by those that understand the basic strategy and some other approaches to the game, but in general, the number is around this.

A blackjack insurance bet actually increases the house's edge in the game significantly. The house edge when playing blackjack insurance is around 5.8%, which is a disadvantage for the player. In some instances, depending on the number of decks being used and the variation of the game, the house edge can even be as high as 7.5%.

Blackjack Insurance FAQ

Is Blackjack Insurance Worth It?

In most cases, no. The odds against a player winning an insurance bet are 9:4, and the casino only pays out 2:1, meaning that the house edge is pretty significant. Insurance bets will often catch players who find themselves in a panic, but in most instances, it is better to avoid this.

Many players will see an Ace and assume that they are going to lose the hand, but the odds of a dealer hitting blackjack from this position are not as high as the player might think.

Those who are experienced in some blackjack basic strategy and who have been following the game may find some opportunities to take an insurance bet better than others, but on the whole, it is best avoided.

What Is A Good Blackjack Insurance Strategy?

In order to really take advantage of a blackjack insurance side-bet, players will need to understand the odds of hitting a certain card and will need to have been keeping track of the number of 10+ cards that have been dealt already.

Basic blackjack strategy will always advise against taking an insurance bet, as the odds are not in the favour of a player. However, if more than a third of the unseen cards that can be dealt are 10+ cards, then a blackjack insurance bet is worth taking. These circumstances are rare, but it is possible.

As a general rule, the best blackjack insurance strategy to apply is to not use insurance. We would also advise players not to follow their gut or instinct when it comes to blackjack insurance bets. The belief that the dealer is ‘due’ to hit a blackjack is going to lead to poor decision-making and is not a good strategy to employ.

How Much Is Insurance In Blackjack?

An insurance bet in blackjack is half of the player’s original stake, and it pays out at 2/1. So, for example, if a player stakes $10 on blackjack, and the dealer’s card is revealed to be an Ace, then the insurance bet will be $5.

Is Blackjack Insurance Increasing The House Edge?

Yes. Blackjack insurance does significantly increase the house edge in the game. The odds against the players when playing a blackjack insurance bet are 9:4, and this increases the house edge by over 3%. In blackjack insurance, players are relying on a very specific outcome to happen. This increase in the house edge is when the game is being played with one deck of cards. If you are playing a variation of blackjack that uses more than one deck, then the house edge can be increased even further.

Of course, players are still able to reduce the house edge if they know basic blackjack strategy. However, there are no circumstances where playing the insurance bet reduces the overall house edge. It will always tip the odds in the favour of the dealer.

Is Insurance Available In All Versions Of Blackjack?

No. Not all blackjack games will offer insurance. You will be able to check which versions of the game offer blackjack insurance here at LeoVegas before you sit down at the virtual table and have the cards dealt. The same applies to live casino offerings.

What Other Side Bets Are Available In Blackjack?

Insurance is not the only side bet that players may be offered when playing blackjack. There are several other side bets that may be offered. Of course, the number of side bets that are offered will depend on the variation of the game you are playing, so we advise reading through the game’s rules before you play so that you fully understand.

The most common types of blackjack side bets are perfect pairs and 21+3. Perfect pairs are based on players being dealt two of the same kind. This can be a mixed pair, which is two of the same value, paying out 5:1. A coloured pair, which is two of the same value and same colour, paying out at 12:1, or a perfect pair, which is two cards exactly the same, paying out 25:1.

A 21+3 bet involves the player’s two cards and the dealer’s upturned card. In this bet, you will be paid out for a number of different combinations. A flush pays out 5:1, a straight pays 10:1, three-of-a-kind pays 30:1, a straight flush pays 40:1, and finally, a suited triple is the most valuable, coughing up 100:1.

Less common types of side bets include a royal match, over/under 13s, super sevens, and lucky ladies.

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