Quick Takeaways
- Insurance is a side bet offered when the dealer shows an Ace.
- You’re betting that the dealer’s hidden card is a 10-value card, giving them blackjack.
- It usually loses money long-term because the true probability of dealer blackjack is typically less than the payout requires.
If you want the full blackjack foundation first (rules, scoring, dealer rules, payouts, and table selection), start with The Complete Guide to Blackjack. This article explains what insurance really is and when (if ever) it makes sense.
What Is Insurance in Blackjack?
Insurance is a side bet you can take only when the dealer’s upcard is an Ace.
Here’s how it works:
- The casino offers you a separate wager of up to half your original bet
- If the dealer has blackjack (Ace + 10-value), the insurance bet typically pays 2:1
- If the dealer does not have blackjack, you lose the insurance bet
Important: insurance does not protect your hand directly. It’s a separate wager with its own result.
Why Casinos Offer Insurance So Often
Insurance feels psychologically appealing because:
- the dealer Ace is intimidating
- losing to dealer blackjack feels “unfair”
- players want an escape hatch
The casino offers insurance because:
- many players take it automatically
- it’s a side bet with a built-in edge in typical situations
It’s one of the easiest “extra” bets for casinos to sell.
The Core Math: What Probability Would Make Insurance Fair?
Insurance pays 2:1.
That means the dealer needs to have blackjack often enough for the bet to break even.
The Break-Even Point (Simple)
If you bet 1 unit on insurance:
- You win 2 units when the dealer has blackjack
- You lose 1 unit when they don’t
For break-even, the dealer would need blackjack at least 1 out of 3 times (about 33.3%).
So the key question becomes:
When the dealer shows an Ace, what is the chance the hole card is a 10-value card?
Why Insurance Usually Loses: There Aren’t Enough 10-Value Cards
In a typical multi-deck shoe, 10-value cards (10, J, Q, K) are common—but not common enough to hit that ~33.3% break-even point.
As a result:
- the dealer’s hole card is a 10-value card less often than insurance needs
- so taking insurance repeatedly loses money over time
That’s the whole story in one sentence:
insurance costs more than it’s worth.
The Most Common Insurance Trap (When You Have a Strong Hand)
Insurance is especially tempting when you have a strong hand—like a 20.
Players think:
“I don’t want to lose my 20 to dealer blackjack, so I’ll insure.”
But here’s the catch:
- If the dealer doesn’t have blackjack, you just paid extra for nothing.
- If the dealer does have blackjack, your insurance may soften the blow—but you still didn’t improve your main hand.
Over time, that extra payment is the leak.
What About “Even Money” When You Have Blackjack?
If you have a natural blackjack and the dealer shows an Ace, you might be offered even money.
Even money is essentially the same as insurance:
- You’re taking a guaranteed payout now
- In exchange, you give up the chance to win the full blackjack payout if the dealer doesn’t have blackjack
It feels safe, but mathematically it is usually not the best long-run option for the same reason: the insurance component is priced in the casino’s favor in typical play.
The Rare Case Where Insurance Can Make Sense
The title says “most of the time” for a reason.
Insurance can make sense if:
- you have strong information that the shoe is unusually rich in 10-value cards
- you’re playing at a level where you’re tracking composition accurately
In other words:
- it’s not a beginner move
- it’s not a “default” move
- it’s a conditional move based on advanced information
For most players playing normal blackjack without advanced tracking, insurance remains a losing bet long-term.
What You Should Do Instead of Taking Insurance
If you want to protect your bankroll, a better approach is:
- avoid bad tables (especially 6:5 payouts if possible)
- follow basic strategy closely
- use smart session bankroll limits
- don’t add side bets that drain EV
Insurance is a side bet. Basic strategy is how you defend your main hand decisions over time.
Quick Decision Rule (Beginner Safe)
If you want a simple rule you can actually apply:
If you’re not using advanced information about the shoe, decline insurance.
That single rule removes one of the most common long-run leaks in blackjack.
Mini FAQ: Blackjack Insurance
1) Does Insurance Mean I Can’t Lose the Hand?
No. Insurance is a separate side bet. You can still lose the main hand.
2) Why Does Insurance Pay 2:1?
Because it’s a bet on the dealer having blackjack. But the dealer doesn’t have it often enough for the 2:1 payout to be fair in typical conditions.
3) Is “Even Money” the Same as Insurance?
It’s basically insurance packaged as a guaranteed payout when you have blackjack against a dealer Ace.
4) Should Beginners Ever Take Insurance?
Usually no. It’s typically negative value unless you have advanced, reliable information.
5) What’s a Better Way to Lower Risk Than Insurance?
Use proper bankroll management and choose tables with player-friendly rules instead of adding side bets.
Where To Go Next
Now that you understand why insurance is usually a bad bet, the next step is learning how to spot favorable blackjack rules at online casinos—because table rules are where real long-run edges are won or lost.
Continue with How to Spot Favorable Blackjack Rules at Online Casinos.
