What is Insurance (Blackjack)?
A side bet available in blackjack when the dealer shows an Ace. Insurance pays 2:1 if the dealer has blackjack. Mathematically unfavorable for most players — basic strategy says never take insurance.
In Depth: Insurance (Blackjack)
Insurance costs half your original bet and pays 2:1 if the dealer has a 10-value card underneath (making blackjack). At first glance it seems like protection, but the maths doesn't work:
- In a 6-deck shoe, ~30.7% of remaining cards are 10-value
- Insurance pays 2:1, but the true odds would need to be 2:1 to be fair (33.3%)
- The house edge on insurance is approximately 7.4%
Even money: If you have blackjack and the dealer shows an Ace, you may be offered "even money" (take 1:1 instead of 3:2). Mathematically identical to taking insurance — avoid it.
The only time insurance has positive expected value is if you are card counting and know the remaining deck is rich in 10-value cards.
Related Terms
Basic Strategy (Blackjack)
A mathematically optimal set of decisions (hit, stand, double down, split, or surrender) for every possible blackjack hand combination. Applied correctly, basic strategy reduces the house edge to approximately 0.4–0.6%.
House Edge
The mathematical advantage a casino has over players on any given game, expressed as a percentage of each bet. The complement of RTP. A game with 97% RTP has a 3% house edge.
Soft Hand
In blackjack, any hand containing an Ace counted as 11 without risking bust. A soft hand can never bust on the next card because the Ace can revert to 1 if needed.