What is blackjack insurance? How It Works & Odds
What is Blackjack insurance?
Blackjack insurance is a side bet offered when the dealer’s upcard is an ace. You’re wagering that the dealer’s hole card is a 10-value card, paying 2:1 if your insurance bet in blackjack proves correct.
When you have the option to protect your main hand by purchasing insurance, it sounds like a good idea. You could salvage your bet if the dealer hits blackjack, right? AK-shu-ally…it isn’t that simple. The reality is more like adding chocolate chips to your pasta salad as insurance against too much onion.
Before you agree to an insurance bet in blackjack, stick with us while we answer some vital questions, including “What is insurance in blackjack?” “Does insurance matter if I hit in blackjack?” and the age-old dilemma, “What fixes a pasta salad gone terribly wrong?”
All of that is coming and more.
Blackjack Insurance Payout: How the Math Works
So you want to know what your blackjack insurance payout will be? Here’s the different scenarios:
| Do you take insurance? ($5) | Does the dealer have blackjack? | Outcome of $10 bet | Outcome of $5 insurance bet | Net Profit |
| Yes | Yes | Push ($0 profit) | Win $10 | $10 |
| Yes | No | Win $15 | Lose $5 | $10 |
| No | Yes | Push ($0 profit) | N/A | $0 |
| No | No | Win $15 | N/A | $15 |
How does blackjack insurance work?
Blackjack insurance is a side bet offered when the dealer’s upcard is an ace. You can buy it for half your original wager. You’re betting that the dealer’s hole card is a 10-value and they have a natural blackjack.
If you’re right, the insurance bet pays 2:1, covering the loss of your main bet. If you’re wrong, you lose both.
So, what does insurance do in blackjack? It offers a break-even backup if the dealer has blackjack. But, as you’re about to see, most of the time, it just adds another fancy way to lose. Let’s take a closer look at this blackjack side bet.
Blackjack Insurance Play-by-Play example:
Step 1: Dealer shows and ace.
Step 2: Insurance is offered.
Step 3: Player places up to half the original bet.
Step 4: Dealer check their hole card.
Step 5: If dealer has blackjack, player receives their payout.
Even Money in Blackjack – Is it the same as insurance?
The even money bet and the insurance bet are mathematically the same. The even money bet is essentially a repackaged insurance bet, but for players holding a natural blackjack. The dealer holding an Ace may worry you that your natural blackjack becomes a push, and if that’s the case, you won’t get any payout at all. However, the dealer only has a blackjack 31% of the time if they show an Ace, so that scenario is not as likely to happen. If you take it, you only get a 1:1 payout compared to the normal 3:2 payout.
Try and avoid and only take the even money bet if you have good reason to believe the dealer has a blackjack.
When should you take insurance in Blackjack?
The insurance bet in blackjack feels like a smart move, especially when you consider that you need it for your car, your house, and your pet. So, here’s when you may want to take insurance in blackjack.
But the reality is far less “safe” than it seems.
So, when you’re studying blackjack strategy and asking yourself, “When should I take insurance?” The answer is a polite never, and we’ll show you why.
When You Have a High Hand
Many players are tempted by insurance when holding a strong hand, such as 19 or 20. The logic is simple but flawed: “If the dealer has blackjack, I’ll lose my big bet. I should protect it somehow.”
But it doesn’t work that way. We’ll take insurance and show you what happens.
- You bet $10 on your main hand.
- You take $5 insurance.
- Dealer does not have blackjack.
- You lose the $5 insurance.
- You win the hand and get paid $10 (1:1 on your main bet).
- Net gain: $5 instead of $10.
Dang it. You should have stuck with your regular bet.
Even if the dealer does have blackjack, you’ll win insurance but naturally lose your hand, which results in breaking even. Hardly worth the risk.
When You Have a Low Hand
In another, parallel universe, let’s say you have a weak hand, like 14, 15, or 16 (although soft 16 is a different story). You might believe it’s worth taking insurance “just in case.” The thinking goes something like this: I’m probably going to lose anyway, so I might as well try to win something back.
We get it. Desperate times, right?
But remember. Your hand has absolutely zero impact on whether the dealer has blackjack. Insurance is only a bet on whether the dealer’s hole card is a 10-value. If it isn’t, you lose. Simple as that.
The One Exception – Card Counting
In Hi-Lo card counting, insurance becomes mathematically favorable when the true count reaches +3 or higher. This, however, only applies to single deck and double deck games, and cannot be used for online multi-deck play.
Blackjack Insurance Odds & House Edge
If you’re still not convinced, the numbers are where your gut feelings go from “hmmm” to “hard pass.”
When the dealer shows an ace, they have a 1 in 3 chance – about 31% – of having a ten-value card in the hole (10, Jack, Queen, or King), which would give them a natural blackjack. That means the insurance bet loses 69% of the time, and that’s assuming a standard multi-deck game.
Do remember that the 31% figure varies depending on the number of decks – single deck can sometimes be more favorable depending on the version you’re playing.
The insurance bet pays 2:1, so when it hits, it looks nice. But even if your hand wins overall, “winning” insurance means only breaking even. You don’t win anything extra, so it’s not some kind of gotcha.
A bit mor math for those that want it broken down even further. In a 6-deck game, there are 96 ten-value cards out of 311 remaining cards (after removing the ace), giving a probability of approximately 30.87% (rounded to 31% above). So therefore, a true payout for this probability would be roughly 2.24:1, not 2:1. This gap between what the actual payout should be and what is offered is also how casinos get the edge.
On average, the blackjack house edge on insurance is around 7.5%. Compare that to blackjack’s overall 1%-ish house edge with perfect strategy, and it seems silly to settle for less on a “most likely not.”
| Bet Type | Approximate House Edge |
| Following Blackjack Basic Strategy | 0.5% |
| Insurance bet | 7.5% |
| Perfect Pairs | 4.1% |
| 21+3 | 3.6% |
This is using 8-deck blackjack as an example – remember that house edge changes depending on the number of decks in play.
Is blackjack insurance worth it?
| Pros | Cons |
| You break even if the dealer does have blackjack | Odds aren’t in your favor (actual chance of dealer blackjack is ~31%) |
| Useful if you’re card counting | Can distract from optimal play |
Remember that the blackjack insurance meaning is that you’re betting the dealer’s face-down card has a ten value, which only has about a 31% chance of being true.
So, the million-dollar question of “Is insurance in blackjack worth it?” is a solid no way, José.
It’s better to save your money, play out your hand, and let basic blackjack strategy guide your next move. Only consider using if you’re an experienced card counter.
What To Do Instead of Taking Insurance – Blackjack Insurance Alternatives
If insurance isn’t the move (and by now, we hope you’ve kicked it off your strategy shortlist), what should you do instead?
First, stick to blackjack basic strategy. It’s the mathematically proven way to play every hand, and it lowers the house edge to under 1%.
Second, focus on bankroll management. Instead of tossing chips at a side bet with a 69% failure rate, use that money to extend your playing time or increase your main bets when the odds are better.
Third, look for versions of blackjack that don’t offer insurance. Sometimes, the choice is made for you when it comes to the insurance bet, in that some games simply don’t offer it.
And finally, just play your hand. The insurance offer is a distraction dressed up like protection. Let it pass and concentrate on the cards you have.
What’s insurance in blackjack? It sounds like protection, but most of the time, blackjack insurance is just a fancy way to lose twice. Say no whenever a game offers you insurance, and instead, focus on the optimal strategy that’s proven to work. Try blackjack at Cafe Casino, and leave the insuring to your car, because your blackjack hand doesn’t need it.
FAQs on Blackjack Insurance
Does insurance matter if I hit blackjack?
Sound the alarm! A plot twist has entered the building. The dealer shows an ace, and you take insurance. But this time, you hit blackjack. Should you take insurance now? Is it finally time? Is it… is it?!
…still nope.
If you take insurance here, you’re betting against your own hand. When you take the insurance side bet, most casinos ditch the standard 3:2 blackjack payout for even money (1:1), meaning they’ll pay you 1:1 on your blackjack right away, regardless of whether the dealer has it, too. You’re giving up extra winnings just to avoid a push.
Put simply, insurance still doesn’t matter if you hit blackjack.
Should I count cards?
It’s true. Card counting isn’t just a skill director Robert Luketic made up to make Kevin Spacey look cool in 21. It’s a legit way to beat the insurance odds if you know there are lots of ten-value cards left.
But most blackjack games use multiple decks, and card counting takes incredible skill. When optimal basic strategy is already sitting right there, learning card counting just to justify insurance is like learning calculus just to split the restaurant bill. Impressive, sure, but totally unnecessary.
Something you should count, however, is the number of referral bonuses you can rack up at Cafe Casino. Invite as many friends as you can muster, and receive just as many cash bonuses when they sign up and make a successful deposit.
What does insurance pay in blackjack?
The insurance bet is a side bet in blackjack that can be made when the dealer has an Ace up card. If the dealer has blackjack, it pays 2:1.
Should you ever take insurance in blackjack?
If you’re playing only with basic strategy, skip the insurance bet. Unless you have reason to believe the dealer has a Blackjack, you should avoid.
What is even money in blackjack?
Even money is offered when you have a blackjack, and the dealer has an Ace up card. You may be worried that if the dealer also has a blackjack, your potential 3:2 payout win will turn into a push (tie). If this happens, your original wager will be returned to you, but you won’t make any profit.
The even money offer means you get paid 1:1 immediately, so if you wagered $10, you’ll win $10, total bankroll = $20.
Even money has roughly the same house edge as the insurance bet, so it’s not recommended to take.
What is the house edge on blackjack insurance?
The house edge of blackjack insurance sits at around 7.5%.
Does insurance help blackjack?
Insurance is a side bet offered when the dealer shows an Ace. It pays 2:1 if the dealer has blackjack.
It’s meant to “protect” your hand, but in reality, it’s a separate wager with worse odds than your main game.