Blackjack Insurance Guide
Blackjack insurance is one of the most hotly debated elements of blackjack, as a longstanding and important part of the game. But what is it exactly, how does it work, and what can you expect from successful and unsuccessful blackjack insurance wagers? Join us at LeoVegas as we break down everything you need to know, so you can make the blackjack insurance bets that you’re confident and comfortable with.
Table of Content:
- What is Blackjack Insurance?
- The Mechanics of Blackjack Insurance
- Pros and Cons of Blackjack Insurance
- Blackjack Insurance from Different Perspectives
- Variations in Blackjack Insurance
- Blackjack Insurance FAQs
What is Blackjack Insurance?
Definition of Blackjack Insurance
Blackjack insurance is a side bet available in many blackjack games, designed to protect your wager in the event that the dealer wins with a natural blackjack - a combination of an ace and a ten-valued card.
How Blackjack Insurance Works
Blackjack insurance is typically available when the dealer’s first card is an ace. When placing an insurance bet, you wager half of your original bet, which is added to the insurance section of the table. If the dealer then reveals their second card to be one worth ten points, you’ll then have your total wager returned to you.
With a blackjack insurance bet, the desired outcome is that the dealer has a blackjack. If the dealer does have blackjack, the insurance bet pays 2:1, covering the player's initial bet loss. However, if the dealer does not have blackjack, the player loses the insurance bet.
When is Insurance Offered in Blackjack?
Insurance is not always offered in blackjack, its availability depends on the casino and the version of blackjack being played. If it is available, an insurance bet is offered after the dealer reveals their first card - and that first card has to be an ace. At this point, you're able to place the insurance wage or ignore it if you prefer.
The Mechanics of Blackjack Insurance
Step-by-Step Process of Taking Insurance
1: Place your bet as you would in any other hand of blackjack.
2: Wait for the dealer to reveal their first card.
3: If the dealer reveals an ace, you can then choose to make an additional insurance wager.
4: Continue to play your own hand, as normal, unless you're playing American Blackjack (in which case the dealer will check their second card immediately).
5: If the dealer reveals their second card as a ten-valued card, you win the insurance bet. If it is not worth ten, you lose your insurance bet,but the round continues as usual.
Calculating the Insurance Bet
The insurance bet is extremely simple to calculate as it’s just half of your original bet. If you placed a wager of $10, this would make your insurance bet cost $5. If you wagered $32, your insurance wager cost would become $16, and so on.
Insurance Payouts
Winning insurance payouts are offered at 2:1. This means that a winning wager on insurance will return double what your insurance bet cost, plus your original insurance wager.
For example, if your insurance wager was $10, you’d get double back ($20), plus your original $10 insurance bet for a total of $30. If your insurance wager was $16, this would return double for $32, plus an additional $16 for a total of $48.
Pros and Cons of Blackjack Insurance
Advantages of Taking Insurance
As the name suggests, the biggest advantages of taking insurance come from protecting yourself and your wager from a loss. A natural blackjack for the dealer is one of the worst outcomes for a blackjack player, so it’s great to have an option to protect against this possibility.
Risk Mitigation
With blackjack insurance, instead of being placed in an overly risky situation to lose money, you can instead turn the tables. On a successful insurance bet, you'll have your entire insurance and original bet returned to you, essentially hitting a reset button.
Potential for Quick Wins
A winning insurance bet can also reduce the time it takes to play a hand. If your insurance bet does win, you'll be able to see it right after the dealer reveals their second card. If you decide to stand right away and win the insurance bet, this can result in speedy victories and payouts.
Disadvantages of Taking Insurance
Like any other form of insurance, the online blackjack version can cost you if you're not fortunate enough to be unfortunate, as contradictory as that might sound.
Increased House Edge
The big issue with blackjack insurance is that it statistically increases the house edge from 2% to 8.5%. This is a significant boost in the house's favour which works against the player.
Long-term Financial Implications
Insurance is a great way to recover your bet, but it won’t reward you like winning wagers will. Placing a significant number of insurance bets over the long term hinders your ability to win as much as bolder bets, though luck and strategy will naturally play an important role.
Blackjack Insurance from Different Perspectives
Player's Perspective
From the player's perspective, insurance in blackjack offers a sense of protection against the game's least-desired outcome - a dealer blackjack. It can give you the impression of control and added security, providing a comforting layer to your basic blackjack strategy. However, this sense of safety can be more illusory than real, as the true odds of winning an insurance bet often don't justify the cost.
Dealer's Perspective
One way or another, the dealer isn’t going to care about whether you take insurance, as they cannot change the way they play because of the game's fixed rules.
Casino's Perspective
The casino knows that anybody who takes insurance is shifting the odds further in the casino's favour. For this reason, they support players taking insurance and are happy whenever this occurs.
Variations in Blackjack Insurance
Differences Across Blackjack Variants
There are a huge number of blackjack variants, and some of these variants can even have slightly different rules in different casinos.
European Blackjack
In European blackjack, the dealer won’t receive their second card until the player has finished all of their actions (hitting, standing, splitting, etc.). This means the player can lose more money in European blackjack after an insurance bet if they double down, even if insurance is won.
American Blackjack
In American blackjack, the dealer receives a hole card when the cards are first dealt. If the player takes insurance, this card is checked immediately, which makes losing additional money on a move like doubling down impossible.
House Rules and Their Impact on Insurance
House rules can further affect insurance betting through elements like the number of decks in play. The more decks used, the more difficult it is to keep mental track and play these cards to your advantage. Other forms of blackjack like Switch Blackjack will also modify the house odds and the reliability of insurance bets.
Blackjack Insurance FAQs
Is blackjack insurance worth it?
Blackjack insurance can be worth it if you’re confident that the dealer has a strong hand or if you’re in a weak position. Statistically, however, it is generally regarded as a bad bet.
Can you win consistently with insurance?
You cannot win consistently with insurance, just like any other bet in blackjack. It’s all about playing the odds and having lady luck smile on you.
How does insurance affect the house edge?
The house edge is increased from a general level of 2% up to 8.5% with insurance.
What are the best situations to take insurance?
The best time to take blackjack insurance is if you have a weaker hand where you are likely to take a loss.
Does insurance change the basic strategy?
Whether insurance changes your blackjack strategy will depend on how you like to play. Insurance is a side bet, so you can still play your hand as normal if you have active insurance. You could choose to be more conservative in this instance, or you could take a greater risk - it's entirely up to you.
What is the insurance rule in blackjack?
The insurance rule in blackjack is a side bet that protects you in case the dealer wins a natural blackjack. This bet uses half of your original wager and pays 2 to 1.
Why do you never take insurance in blackjack?
The idea behind never taking insurance in blackjack comes from statistical analysis and those who like to play blackjack as efficiently as possible. Insurance is one of the more statistically unsafe bets, so many players recommend never taking it. Of course, if you’re most interested in feelings and luck, this might not matter.
What does insurance pays 2 to 1 mean?
It means that a winning insurance bet will payout twice what you put in, plus your returned insurance bet. For example, if you put $10 into the insurance bet and it wins, you’ll be rewarded with $20 from double your insurance bet, plus your original $10 wager for a total of $30.
How does insurance payout work in blackjack?
The insurance payout in blackjack will double the amount of money you put into the insurance wager, plus your original wager amount.
Is it smart to take insurance in blackjack?
Statistically, taking insurance in blackjack is not a smart bet. It increases the house odds by 6.5% and is generally considered a bad bet by most veteran blackjack players. It can still help in some situations, however, since it also depends on luck.
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