Insurance in Blackjack

Insurance is a side bet offered when the dealer's upcard is an Ace. It pays 2:1 if the dealer has blackjack. Despite sounding protective, insurance is a bad bet that increases the house edge.

How Insurance Works

When the dealer shows an Ace, you're offered insurance before anyone plays:

• Cost: Half your original bet
• Pays: 2:1 if dealer has blackjack
• Loses: If dealer doesn't have blackjack

If you bet $10 and take $5 insurance:

• Dealer has blackjack → You lose $10 but win $10 from insurance (break even)
• Dealer doesn't have blackjack → You lose $5 insurance, play continues

Why Insurance Is a Bad Bet

The math doesn't work in your favor:

• Probability dealer has blackjack: ~30.8% (when showing Ace)
• Fair odds for 2:1 payout: 33.3%
• House edge on insurance: ~7.7%

You'd need the dealer to have blackjack more than 1/3 of the time to break even. They don't.

Never Take Insurance

Basic strategy is clear: always decline insurance. This applies even when:

• You have a strong hand (20)
• You have a weak hand (12)
• You have blackjack yourself (see even money)

The dealer's hole card doesn't know what you're holding. Insurance is a separate bet that loses money over time.

The Psychology Trap

Insurance feels safe because it "protects" your hand. But you're not protecting anything—you're making a new, unfavorable bet. Over hundreds of hands, declining insurance saves you money.