What is insure in blackjack

There are several rules and scenarios associated with insurance betting in blackjack. Here is everything categorized and summed up for ease of understanding.

Blackjack Insurance Rules

Blackjack insurance is a side bet, which players are allowed to take advantage of if the dealer's up card is an ace. Simply put, the player is betting that the dealer will have a blackjack.

The basic rules of blackjack insurance are as follows:

• Once the cards are dealt, the dealer will say, 'Insurance Open', asking the players to place a side bet if they want to.
• In case, a player decides to use an insurance bet, he will have to place half of his bet in the insurance spot on the table before the insurance is closed.
• If the dealer indeed has a blackjack, the player is paid 2:1 on the side bet.
• If the dealer does not have a blackjack, then the player loses the insurance bet and continues playing with the regular hand dealt.
• If the player already has a blackjack and wins the insurance bet too, the payout is 3:2.
• The player can also take even money, implying that he forfeits the 3:2 blackjack bonus. He, will, instead be aiming at winning the original wager back. This means that the player puts up the Insurance and if the dealer hits a Blackjack, he wins on the Insurance. If the dealer does not have a Blackjack, the player loses the amount of the Side Bet but gets compensation when they are paid 3-2 for the Blackjack.

While playing blackjack online, players must keep an eye on the pop-up notification asking for a confirmation or denial of the insurance bet.

Blackjack Insurance Odds

The blackjack insurance probability of the dealer making blackjack in a regular game is 9:4.

The exact odds of winning an insurance bet for the player are not the same and vary depending on the number of decks and the number of ten-point cards already dealt in the game.

Generally, the odds are against the player unless he is proficient in card counting and is able to apply the basic blackjack strategy perfectly well.

In fact, insurance is often called a "suckers bet" as it is very much in favor of the house.

Blackjack Insurance Price

If the player wins, that is the dealer's face-down card turns out to be a 10, then the blackjack insurance payout is 1:1 or a percentage equal to the wager.

In a situation where the player's hand turns out to be blackjack, he is paid at 3:2, that is, three dollars for every two bet or one-and-a-half times the wager.

House Edge

The house edge on paying insurance in blackjack is about 5.8% when a single deck of cards is used. But, modern blackjack is played with 6-8 decks of cards and in such scenarios, the house edge can go as high as 7.5% for a single round of the game.

If you’re new to blackjack, you might be confused the first time you sit at the table and see “insurance pays 2:1” emblazoned on the felt. For most people, thinking of insurance brings to mind protection for their car or home. Well, insurance in blackjack isn’t a million miles away from that; it’s essentially a payment to mitigate losses. However, this time you’re not protecting against fire or theft but instead against a pair of cards.

What is insurance in blackjack?

In blackjack, you can make an insurance bet if the dealer is likely to have a strong hand – namely, blackjack. You will be offered insurance against the dealer having a natural blackjack if the dealer’s upcard (their one face-up card) is an ace. If their face-down card is a 10 or a face card, they have blackjack and will automatically win the hand without dealing further cards.

Assuming no knowledge of any other cards besides the dealer’s ace, there are 96 cards from the remaining 311 (in a six-deck game) that will give the dealer blackjack. This means they will win automatically almost one-third of the time. Players take insurance to mitigate this risk.

How does blackjack insurance work?

So you’ve got your hole cards. The dealer has an ace. Time to decide if you’re going to take insurance. Insurance is a bet worth half of your main bet and will pay out 2:1. Here’s an example of how it works:

1. You bet $20 on a hand of blackjack.
2. You receive a 9-6 for a total of 15.
3. The dealer’s upcard is an ace.
4. You place an insurance bet of $10 in addition to your original $20 bet.

In this instance, if the dealer has blackjack, you will lose your $20 main bet but receive a 2:1 payout on your insurance bet, thereby breaking even. If the dealer does not have blackjack, you will lose your $10 insurance bet but have the chance to play out the hand as normal to try and double your $20 main bet.

The mathematics of blackjack insurance

As we mentioned, there are approximately 96 cards from 311 (six decks, less the dealer’s ace) that will give the dealer blackjack and allow you to break even on the hand. This means that 96/311 times (61.74%) your insurance bet wins. You break even.

Happy days, right? Wrong. There are 215 cards that the dealer could have that do not result in blackjack, thereby losing your insurance bet 215/311 (69.13%) of the time. That results in the insurance bet carrying a house edge of (0.6913 – 0.6174) 7.40%.

In other words, for every $10 you wager on insurance you can expect to lose $0.74 in the long run.

Should you take insurance in blackjack?

If you want to play in the most optimal way to minimise the house edge, then according to the mathematics of blackjack insurance you should never take it. However, if you are at a live casino and counting cards to overcome the house edge, there are situations in which insurance may be profitable if you know that there are a lot of tens and face cards in the deck.

If you have given yourself a fixed bankroll for the day’s blackjack session (always a good idea) and want to try to prolong your time at the table, then insurance might be a good idea if you have a poor hand and would rather break even against blackjack than lose.

What is the difference between insurance and even money?

After your cards are dealt, you’ll be offered insurance if the dealer has an ace. But what if you’re dealt 21? In this case, if the dealer has blackjack, you will tie and break even, so insurance is redundant. Enter the even money offer.

A natural blackjack will pay 3:2, but tie against a dealer blackjack. The even money offer means that you will take a 1:1 payout on your blackjack regardless of the dealer hand, meaning that you cannot break even. However, if the dealer doesn’t have blackjack, you will be receiving a lower payout than you otherwise would have done.

Other blackjack side bets

Although it’s not strictly in the same category, you can think of blackjack insurance as a kind of side bet. After all, you’re wagering money against an outcome – in this case, that the dealer has blackjack.

Other examples of side bets that might be a little more fun than the nervy wait to see if the dealer turns over a natural blackjack include the following:

Lucky Ladies blackjack side bet

The Lucky Ladies side bet pays out if your first two cards are a pair of tens or higher. The name comes from the huge 200:1 payout you’ll receive for being dealt two queens of hearts.

Super Sevens blackjack side bet

The Super Sevens blackjack side bet will reward you for being dealt any number of sevens. The sevens can be pretty super indeed, with a top payout of 5,000:1 if you receive three suited sevens.

21+3 blackjack side bet

One of the most common blackjack side bets is the 21+3 side bet. This combines blackjack with three-card poker, paying out if your first two cards and the dealer’s up card make a poker hand.

These days, you can insure everything: your car, your boat, your house, even your life. You also can buy insurance at casinos - whenever you sit down at a blackjack table.

This latter insurance is a little different. While few can argue the value of insuring investments, many pooh-pooh the notion of insuring wagers. Hang around gamblers long enough and you quickly learn that insurance is by far the most controversial subject in blackjack. That means it's time for a closer look.

How it works: Essentially, insurance is a side bet that the dealer has blackjack. Like any side bet, it plays out independently of your original wager. The option is available only after all the initial cards have been dealt, and only if the dealer shows an ace. To take it, you must put up half your wager. If the dealer has blackjack, you win the insurance bet, usually at 2 to 1 odds - meaning you break even on the hand. If the dealer doesn't have blackjack, you lose the insurance bet.

Why people do it: The lone reason you should make the bet is in anticipation of a 10. For gut players - those who don't necessarily concern themselves with the math - this means taking insurance when the dealer has been running hot. For advantage players - those who count cards, geek out about statistics, or both - it means taking insurance when it appears a 10 is imminent.

Flawed reasoning: In my experience, players sometimes justify taking insurance because they have a "strong hand" of 20. In most cases - unless you have an A/9 - this thinking is flawed fundamentally: Because insurance wagers assume that the dealer is hiding a 10, taking insurance on a 20 actually puts you at a disadvantage. To quote Michael Shackleford, a.k.a., the Wizard of Odds, "The greater the ratio of 10 in the shoe, the more likely the insurance bet is to win." The operative words in this sentence are "in the shoe." If you've got two 10s in your hand, the last thing you want to do is bet that another one of them is hiding beneath the dealer's ace.

The verdict: Even if you think you're psychic, it's best to avoid insurance bets. Basic odds for dealer blackjack vary slightly depending on how many decks are in the shoe, but the dealer is likely to have blackjack less than one-third of the time. Sure, you might hit one of these wagers every once in a while, but these bets will lose money in the long run. Blackjack might be the only place where insurance is almost always a bad investment.