Blackjack is one of the most widely played card games in online casinos, known for its straightforward wagering systems and simple gameplay. While the core gameplay revolves around beating the dealer’s hand without going over 21, players may also encounter optional side bets that add complexity to each round. One of the most common of these is the insurance bet in blackjack.
For players who are new to online casino games and are unsure what this wager is, this guide aims to answer frequently asked questions about this blackjack side bet, explain the numbers behind the wager, and how it may affect gameplay.
What Is Insurance in Blackjack?
Players who are still learning the blackjack terminology and rules, especially surrounding side bets, may ask the question, “What does insurance mean in blackjack?” It is a separate blackjack side bet that costs half of the original wager and is offered only when the dealer’s up-card is an ace. When placing this side bet, the player is betting that the dealer’s hidden (hole) card is worth 10, giving the dealer a natural blackjack.
If that happens, the blackjack insurance payout is 2:1. If not, the insurance chips are removed, and the original hand plays out normally.
How Does Insurance Work in Blackjack?
The insurance bet in blackjack is applicable when the cards are dealt, the dealer’s upcard is an ace, and the dealer’s second card is yet to be revealed.
At this point, in both a live game and an RNG version of blackjack, the player can choose to place an insurance bet before the dealer checks their hole card. The cost of the insurance bet is 50% of the initial bet. For example, a $10 hand requires a $5 insurance bet. This wager is placed on a special area of the table in front of the player.
After the players have decided whether or not to take insurance, the dealer reveals their second card. If the dealer reveals blackjack, the insurance bet pays out 2:1, but the player loses their main wager. If the dealer doesn’t have blackjack, the blackjack insurance bet is lost, and the round continues.
What Happens if the Player and Dealer Have Blackjack?
There’s an alternative to the insurance wager known as an even-money bet. When the player also has blackjack, they can choose to take an even money wager. This “protects” against a push (a tie with no payout), but also sacrifices the potential 3:2 payout if the dealer doesn’t have blackjack.
The Math Behind the Insurance Side Bet
The blackjack insurance odds always favour the house. According to the Wizard of Odds article “Insurance in Blackjack – Just Say No!”, the house edge is 7.4%. This is significantly higher than the house edge of approximately 0.5–2% on regular blackjack bets (this value varies depending on whether the player is following a blackjack strategy or not).
Should the Player Place an Insurance Side Bet?
Even though insurance is more in favour of the house, as with any other wager, the player should weigh up the pros and cons.
The potential pros of insurance in blackjack
- Offsets part of the loss if the dealer has blackjack
- Adds variety to play.
The cons of insurance in blackjack
- In the long run, the player can expect to lose 7.4c to every dollar wagered.
- It does not “protect” strong totals, such as 20, when the dealer doesn’t have blackjack but makes 21 in three or more cards.
- Even-money on a player blackjack gives up expected value.
When playing blackjack strategically, many players opt to decline insurance as it is statistically unfavorable. However, the individual player may decide that this risk is worth the wager if the play seems favourable and they have sufficient bankroll to take the risk. Players should understand the mechanics and house edge before engaging with this option, as informed decision-making is key to responsible play.
