What is Insurance in Blackjack?

Understanding what insurance in blackjack entails and whether it is a good choice can significantly impact your game strategy and overall success at the table.

Insurance & Blackjack

Insurance in blackjack is a side bet offered to players when the dealer’s upcard is an Ace. Essentially, it acts as a form of protection against the dealer having a blackjack. If the dealer does indeed have a blackjack, the insurance bet pays out at 2:1 odds, thereby mitigating the player’s loss on their main hand. This bet is typically worth half of the player’s original bet.

How Does Insurance in Blackjack Work? 

The concept behind insurance is simple: it’s a way for players to hedge their bets when they suspect the dealer might have a natural blackjack. Here’s a breakdown of how it works:

1. Offer of Insurance: When the dealer’s upcard is an Ace, the dealer will offer insurance to the players. This happens before any additional cards are dealt.
2. Placing the Insurance Bet: Players can choose to place an insurance bet, which is up to half of their original bet. For example, if a player has a $20 bet on the hand, they can place an insurance bet of up to $10.
3. Dealer Checks for Blackjack: After insurance bets are placed, the dealer will check their hole card (the facedown card) to see if they have a ten-value card (10, Jack, Queen, or King), which would give them a blackjack.
4. Outcomes:
   • Dealer has Blackjack: If the dealer has a blackjack, the insurance bet pays out 2:1. This means that if the player placed a $10 insurance bet, they would win $20. However, the player still loses their original bet, unless they also have a blackjack, in which case it is typically a push (a tie) for the main bet.
   • Dealer does not have Blackjack: If the dealer does not have a blackjack, the insurance bet is lost, and the game continues as normal with the original bets.

Example Scenario

• Player’s Hand: Player has a bet of $20 and receives a 10 and a 7 (total of 17).
• Dealer’s Upcard: Dealer shows an Ace.
• Insurance Bet: Player decides to place a $10 insurance bet.
• Dealer’s Hole Card: Dealer reveals a 10, making their hand a blackjack.

In this scenario:

• The player loses the original $20 bet.
• The player wins the insurance bet, receiving $20 (2:1 payout on the $10 insurance bet).

Should You Buy Insurance in Blackjack?

Deciding whether to buy insurance in blackjack depends largely on a player’s individual strategy and understanding of the game’s odds. From a mathematical standpoint, insurance is often not recommended for the average player. Here’s why:

1. House Edge: Insurance bets tend to have a high house edge. The likelihood of the dealer having a blackjack is less than one in three, making the insurance bet statistically disadvantageous over time. Specifically, the actual probability of the dealer having a ten-value card as a hole card is around 30.8%.
2. False Sense of Security: While insurance might seem like a prudent choice to protect against losing your main bet, it often results in a net loss. For example, if you continually place insurance bets, you’ll typically lose more money than you save in the long run.
3. Advanced Strategies: Some advanced players, especially those adept at card counting, might use insurance as part of their broader strategy. For card counters, knowing the deck composition allows them to take insurance bets when the odds are in their favour. However, for most players, the lack of this insight makes insurance a losing proposition.

How Much does insourance cost?

The cost of insurance in blackjack is directly tied to the amount of the player’s original bet. Here’s a breakdown:

• Original Bet: This is the initial amount the player wagers on their hand. Let’s call this amount BB.
• Insurance Bet: The insurance bet can be up to half of the original bet. Therefore, the maximum insurance bet is B22B​.

Example Costs

• If a player’s original bet is $20, the maximum insurance bet they can place is $10.
• If a player’s original bet is $50, the maximum insurance bet they can place is $25.
• If a player’s original bet is $100, the maximum insurance bet they can place is $50.

The cost of insurance is always half of the original bet. It’s an additional side bet and is only offered when the dealer’s upcard is an Ace. The player must decide whether to take the insurance bet or not, and if they do, they place an amount up to half of their original wager as the insurance bet.

Alternatives to Buying Insurance

Rather than relying on insurance, players might consider other strategies to enhance their blackjack gameplay. These include:

1. Basic Strategy: Utilizing a basic strategy chart, which outlines the best possible moves based on your hand and the dealer’s upcard, can significantly reduce the house edge and improve your chances of winning. Basic strategy helps players make statistically optimal decisions, such as when to hit, stand, double down, or split pairs.
2. Bankroll Management: Setting limits on how much you are willing to bet and sticking to those limits can help you manage your losses more effectively. This disciplined approach prevents the need for side bets like insurance. Bankroll management involves setting aside a specific amount of money for gambling and not exceeding that limit.
3. Learning Card Counting: For those interested in a more advanced strategy, learning card counting can provide insights into the composition of the deck and inform better betting decisions, including when (if ever) to take insurance. Card counting involves keeping track of the high and low cards that have been dealt to predict the likelihood of certain cards being dealt in the future.

Conclusion

In summary, while insurance in blackjack can seem like a protective measure against potential losses, it is generally not recommended for most players due to its high house edge and the low probability of it being beneficial in the long run.

Instead, focusing on sound blackjack strategies and effective bankroll management can provide a better foundation for success at the tables.

Advanced players might occasionally find insurance useful as part of a broader card-counting strategy, but for the typical player, avoiding insurance is often the best course of action.Ready to put your skills to the test?

Visit Rhino.bet to apply these strategies and enjoy an exciting and rewarding blackjack experience. Play smart, and good luck!