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What does insurance mean in blackjack and how it works?
Have you ever wondered what blackjack insurance is and whether it’s worth taking? This blog post breaks down this common side bet, which is offered when the dealer shows an Ace. Insurance allows players to wager against the dealer hitting blackjack. We’ll explain how it works, when it can be useful, and why many experts advise against it.
What is insurance in blackjack?
Blackjack insurance is a side bet offered when the dealer’s upcard is an Ace. It allows players to bet half of their original wager in case the dealer has a natural blackjack (21). If the dealer does have 21, the insurance bet pays 2:1, covering the main bet’s loss. If not, the insurance bet is lost, and the game continues.
When to take insurance in blackjack?
Making insurance in blackjack can be a strategic move, but it’s often a risky bet. It’s best considered in specific situations where the odds are more favorable:
- When the Dealer Shows an Ace
- When You Have a Weak Hand (16 or Less)
Risks of taking insurance in blackjack
Insurance in blackjack might seem like a safety net, but it often does more harm than good.
- It’s a Losing Bet – Even if the dealer has a blackjack, your insurance bet doesn’t always cover your losses. In most cases, you end up worse off than if you had skipped it.
- Limited Protection – Insurance only covers your current hand, not the entire table. If you have a strong hand and the dealer hits blackjack, you still lose money despite taking insurance.
- A Risky Gamble – You're betting on something out of your control: whether the dealer has blackjack. It’s not a smart strategy, just another gamble with bad odds.
In short, insurance sounds like a safeguard, but in reality, it’s a costly risk that rarely pays off.
What are the odds of an insurance bet?
The probability of the dealer having blackjack with an Ace upcard is 31.5%, meaning that the insurance bet loses 68.5% of the time. This results in a negative expected return of -48.7%, making it a high-risk bet. With a house edge of 8.5%, insurance is generally not a profitable choice unless card counting is involved.
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