Blackjack insurance is a popular casino card game feature that allows players to protect their hand against the dealer getting 21. While it is referred to as insurance, it’s technically a side bet which will be offered when the dealer has an ace as their face-up card.
On a blackjack table, there is an arc between the dealer and the players, which is the insurance line. To play an insurance bet, move the right amount of chips to that line before the dealer looks at their face-down card.
If you take insurance and the dealer gets blackjack, you avoid a loss and will break even on the hand. Below, we look at this game feature and answer some of the common questions about what is insurance in blackjack.
How Does Blackjack Insurance Work?
There is only one scenario in blackjack where the insurance option can be used. This is when the dealer has revealed their face-up card to be an ace and has yet to look at their second card. The insurance is offered but is completely optional.
A quick blackjack insurance overview:
- You make your original bet
- Cards are dealt
- Dealer has an ace as their face-up card
- Insurance is offered against them making 21
- Half of the value of the original stake is put on the insurance bet
A good way to think of a blackjack insurance example is to relate it to hedging in sports betting, which is playing both sides of an outcome. Your original stake is essentially wagering that the dealer won’t get 21, and you can beat the dealer’s hand. Blackjack insurance is a side bet on the dealer getting 21.
In sports betting, it is common to see promotions where a bookmaker returns the stake on a bet if it loses under certain circumstances. An example would be a bookmaker returning the stake on an accumulator bet that loses by just one leg.
However, blackjack insurance doesn’t insure the original bet in its entirety, which is perhaps where the confusion over this aspect of the feature comes in. Blackjack insurance does not return the value of your initial stake unless you pay extra for the coverage through the side bet and only if the dealer hits blackjack by producing a 10-point card with their hole card.
Insurance also doesn’t protect your hand if the dealer turns over anything besides a 10 card. If you decide to take blackjack insurance when the dealer’s up-card is an ace and their hole card turns out to only be a five, play continues as normal, but the insurance is gone.
So, if the dealer carries on and gets 21 with three cards, you aren’t protected against that, and the original stake is gone along with the stake on the insurance side bet. This is why blackjack insurance should be viewed as a second bet.
Blackjack Insurance Examples
To help provide a clearer view of what is insurance in blackjack, here are some basic blackjack insurance examples of winning and losing scenarios when the insurance bet is taken.
Winning blackjack insurance
- The original blackjack stake is €10
- The player receives a queen and 10
- Dealer reveals an ace as their up-card
- The player takes insurance on the game of €5 (half of the original stake)
- The dealer flips over a jack, giving them blackjack
- The player loses the original stake, but receives a 2 to 1 insurance payout, allowing them to break even
Losing blackjack insurance
- The original blackjack stake is €10
- The player receives a Jack and a nine
- The dealer has an ace as their up-card
- Player wants protection against a dealer 21 and takes the €5 insurance side bet
- Dealer’s hole card is a three
- The player loses the insurance bet
- Play continues as normal, and the dealer attempts to beat the player’s 19
Advantages and Disadvantages of Insurance Betting
As with all types of betting, there are advantages and disadvantages of taking the blackjack insurance side bet. It’s good practice to look at both sides of things to help size up the value of the opportunity.
Advantages
Protection against dealer 21 – The main purpose of blackjack insurance is simply to protect the player against the dealer turning 21 with their hole card if their up-card is an ace.
Break-even opportunity – The player breaks even if the blackjack insurance kicks in. The 2 to 1 odds on the insurance means the player will get back the total value of their stake played on both the insurance bet and the original bet, but no profit.
Based on the dealer’s up-card – As the player gets to see their cards and what the dealer’s up-card is first, this gives the player the chance to assess the table and decide whether to the insurance bet offers value.
Disadvantages
Expensive for one turn of a card – Blackjack insurance comes with an extra expense to the player. It will involve playing half of the original stake again and that is only for the turn of the hole card by the dealer.
House edge increases – Any insurance offering in casino gaming, improves the house edge. Depending on the game, blackjack insurance can increase the edge from 5% to 8%. This is because the probability of a dealer turning over a 10 to go with their ace up-card is much lower than them not doing so.
Expected long-term net loss – Playing insurance on every hand of blackjack would result in a long-term net loss to the player. It’s a feature that is to be used under special circumstances, rather than constantly.
When to Take Insurance in Blackjack?
The insurance blackjack bet is interesting because most seasoned players encourage others not to use it. Firstly, there is the strategy side of things. The more concerned you are about what the dealer is doing sitting there with an ace in front of them, the more it can take you away from your blackjack strategy. It’s seen as a big deviation.
For many players, it is best to focus on what can be controlled, which is how to use what they have in front of them. A solid blackjack strategy is crucial for playing the game successfully, and there are some key times when it is generally worth considering the insurance option.
The number of decks that are in play is one of the factors. There are various types of blackjack, and they can be played on multiple decks. At online casinos, this is commonly six or eight decks. The more decks, the fewer the insurance opportunities.
In an eight-deck game, for example, while more 10-point cards are in the mix for the dealer to potentially pull, the number of lower-ranked cards in play is massively multiplied over a six-deck game. This limits the probability of the dealer producing a ten or a face card.
The value of the player’s hand is also a key factor in when to take insurance. Taking it after being dealt two 10-point cards doesn’t make much sense, but it is a blackjack insurance example of when many players will think about using it, as they want to protect a strong hand.
But holding 20 means you can be certain there are two fewer 10-point cards in the shoe, alongside any others in play on the table. Statistically, this makes it harder for the dealer to hit 21, so it is better for the player, meaning there is even less reason to take the insurance side bet at that point.
It’s often explained that blackjack insurance is only worth taking when you are certain that the dealer’s hole card will be a 10 to back up their ace. However, like any casino game, blackjack involves chance, so there is never certainty. It’s all about judgement at the time and preference.
What are the Odds for Insurance Bets?
Insurance blackjack pays at 2 to 1, allowing the player to break even. Based on a €10 stake, a €5 insurance stake would be needed for a total of €15. If the blackjack insurance kicks in, the 2 to 1 insurance payout returns €10 plus the €5 insurance stake, so that’s €15 back to break even.
House Edge and Probabilities
Also, consider that playing an insurance bet raises the house’s edge. Typically, online casino blackjack games are eight-deck shoes with a standard edge that is typically no larger than 1%, but an insurance bet shifts that edge to anywhere between 5% and 8%, which is a huge leap.
It is also worth thinking about the probability of 21 happening. In a blackjack game with eight decks, the chance of landing blackjack on any one hand is just under 5%, roughly once every 21 hands. That number drops down to less than a quarter of a per cent of both a player and the dealer getting blackjack on the same turn.
However, it’s more important to consider the chance of turning over blackjack from a leading ace card. There’s approximately a 30% chance of producing 21 from that position, which is much higher. The probability of blackjack from an ace up-card on games involving fewer decks increases slightly.
That 30% probability is an important number to remember in blackjack. If a dealer has a 30% (9/4 odds) chance of turning over a 10-point card, that’s still a 70% chance that they don’t, which is why some players avoid ever taking the insurance bet. The odds are still in favour of the player.
Also, by playing the insurance bet, the house edge gets at least a 3% boost. The number of decks in use and how many 10-value cards have already been dealt will also shift the weight of probabilities, so the above statistics are only general averages.
What is Insurance in Blackjack? A Quick Summary
Blackjack insurance can protect your hand against the dealer landing 21. It is not considered to be a long-term option for gambling on blackjack, as the odds and probability do not make it viable for regular use.
As with all calls in blackjack, it is down to the player to decide when to use it. However, the odds of an insurance bet working out in favour of the player are generally low.
Play Online BlackJack in our Live Casino here
