What Is Insurance in Blackjack?

Blackjack insurance is one of the most misunderstood bets in the game, often tempting players as a way to “protect” their hand when the dealer shows an Ace. While it may seem like a smart move, the reality is that insurance typically benefits the house, with odds stacked against most players. Unless you’re skilled at card counting or playing a special game variant, taking insurance will likely lead to more losses than wins over time. Understanding the math behind this bet and knowing when to avoid it can help you make smarter decisions at the table. In this guide, we’ll break down how insurance works, when it might be useful, and why most players are better off skipping it.

Blackjack insurance is one of the most debated aspects of the game. If you’ve ever sat at a table and heard the dealer ask, “Insurance, anyone?” you may have wondered if it’s genuinely helpful or simply a slick way for the casino to make more money. Spoiler alert: it usually benefits the house more than it helps you. Still, understanding what insurance is—and when it might be worth considering—can make a real difference in your overall blackjack strategy. 

How Does Insurance Work? 

Insurance in blackjack is a side bet offered whenever the dealer’s face-up card is an Ace. Essentially, you’re betting that the dealer’s hidden card (the hole card) will be a 10-value card (10, Jack, Queen, King), which would give the dealer a natural blackjack. 

• Cost of the bet: Half of your original wager 

• Payout: 2:1 if the dealer does have blackjack 

• Outcome if the dealer doesn’t have blackjack: You lose the insurance bet, but you continue playing your main hand as usual 

At first, it can look like a “safety net,” but there’s more to the story. 

When and Why Is Insurance Offered? 

Insurance only appears when the dealer’s upcard is an Ace, a situation that naturally raises the likelihood of blackjack. The rationale is that an Ace plus a 10-value card (known as a natural) is almost impossible for other players to beat—so the casino lets you “protect” your bet. 

1. Dealer has a 10 in the hole: If you’ve taken insurance, you win 2:1 on that side bet, essentially recovering what you lose on your main bet. 
2. Dealer does not have a 10 in the hole: You lose your insurance wager, but your primary hand is still in play, and the round proceeds. 

Although insurance might seem helpful in these moments, most stats show it favors the house. Get more information about side bets to make your play better and beat the house.

How Does the Payout for Insurance Work? 

If the dealer’s hole card completes a blackjack: 

• You get a 2:1 payout on your insurance bet. 

• For instance, if your original bet is $20, your insurance bet would be $10. If the dealer has blackjack, you get $20 from the insurance (2:1 on $10), which cancels out your loss on the main hand. 

If the dealer does not have blackjack: 

• You lose your $10 insurance bet. 

• The round continues with your original $20 wager still active. 

It sounds balanced on the surface, but the house edge often tilts this bet against the majority of players. 

The Math Behind Insurance: Why It’s Usually a Bad Bet 

The central issue is probability. Statistically, the chance that the dealer’s face-down card is a 10-value is roughly 30%. That means you’ll lose your insurance bet around 70% of the time. If you repeatedly take insurance over many sessions, the math won’t work in your favor. 

I recall a stretch early in my playing days when I routinely said “yes” to insurance, thinking it protected me from big losses. Ironically, it caused more frequent smaller losses, which added up over time. Once I reviewed the numbers, I realized I was essentially handing chips to the house. 

When Might It Make Sense to Take Insurance? 

• Card Counters: If you’re adept at counting cards and can identify a high concentration of 10-value cards left in the shoe, insurance can become mathematically favorable. 

• Special Game Variants: Some blackjack variants (e.g., Spanish 21 or Free Bet Blackjack) come with unique rules that might alter the usual odds for or against insurance. 

Outside these very specific circumstances, it’s typically a losing proposition for the average player. 

What’s the Difference Between Insurance and Even Money? 

If you have a blackjack and the dealer’s upcard is an Ace, you may hear the term “even money.” This is simply a faster way of offering insurance to a player with a guaranteed blackjack. The dealer pays you 1:1 on your main bet, no matter what happens next. Although it feels safer, the underlying math remains the same as taking insurance—over many hands, the house still holds the advantage. 

Common Mistakes Players Make with Insurance 

1. Assuming It Always Protects You: Insurance only covers the narrow outcome of the dealer having blackjack—it doesn’t safeguard you from other unfavorable scenarios. 
2. Chasing Peace of Mind: Some players repeatedly buy insurance to avoid big swings, only to rack up steady, incremental losses. 
3. Relying on a Hunch: Basing decisions on “it just feels right” usually ends in disappointment. Sticking to math and strategy is far more reliable. 

Early in my playing days, I’d frequently opt for insurance just because I hated the feeling of a total bust if the dealer flipped a 10. Unfortunately, those “little side bets” added up faster than I ever imagined. 

Exceptional Situations: When Insurance Might Be a Good Idea 

As mentioned, advanced players capable of card counting can shift the odds when they know the deck has a higher-than-usual count of 10-value cards. But unless you’re at that level—and it’s harder than many people think—these situations won’t often arise. 

FAQ

1. Does taking insurance in blackjack affect my overall odds of winning?

Yes, taking insurance generally worsens your overall odds because it introduces a side bet that statistically favors the casino. Since the dealer’s hole card is only a 10-value card about 30% of the time, you will lose your insurance bet more often than you win it. Over many hands, this extra cost adds up, making insurance a poor choice for most players unless they are skilled card counters.

2. Why do casinos offer insurance if it’s a bad bet for players?

Casinos offer insurance because it increases their long-term profits by appealing to players’ fears of losing to a dealer’s blackjack. While it seems like a protective bet, most players end up losing money on it over time due to the unfavorable odds. It’s designed as a psychological safety net, but in reality, it’s just another way for the house to gain an edge.