What is Insurance in Blackjack and When to Take it?

What is Insurance in Blackjack?

The insurance in blackjack is a side bet offered by the casino when the dealer’s upcard is an Ace. Insurance bets are based on the simple concept of probability. Since the dealer has an Ace, there is a higher chance that they will have a blackjack (a ten-value card as their hole card), and insurance is designed to help players mitigate the risk associated with this strong dealer hand.

How do Insurance Bets Work?

The insurance bet works as follows:

1. The dealer deals the initial hand and reveals an Ace as their upcard.
2. The dealer will then ask you if you want to purchase insurance before checking their hole card for a potential blackjack. This insurance bet is optional, and you are not required to participate.
3. If you decide to take insurance, you will place a bet worth up to half of your original bet. 
4. If the dealer has a blackjack, the insurance bet pays out 2:1. 
5. The insurance bet offers players an opportunity to recoup some or all of their initial investment if the dealer has a blackjack.
6. However, if the dealer does not have a blackjack, the insurance bet is lost, and the game proceeds as usual. 
7. The players’ main bets are still in play, and they can now decide whether to hit or split based on their hand and the casino’s specific rules.

Odds and Payouts for Insurance Bets

The odds of the dealer having a blackjack when their upcard is an Ace are approximately 9:4 or 2.25:1. This means that four out of thirteen cards will result in the dealer having a blackjack, and nine will not.

The payout for insurance bets is 2:1. This means that a player who wagered $10 on insurance (which would be $5 on their main bet) would receive $20, effectively breaking even (as they would lose their original $10 bet to the dealer’s blackjack).

However, when considering the odds of winning an insurance bet (2.25:1) and the payout rate (2:1), it becomes apparent that the house has a considerable edge. Specifically, the house edge on insurance bets in a standard eight-deck blackjack game is around 7.7% – significantly higher than that for a typical blackjack game.

Most experienced blackjack players and gambling experts do not recommend placing insurance bets as a long-term strategy. 

Why do some players avoid taking insurance in online blackjack?

Many players choose not to take insurance because it is considered a side bet that generally has a higher house edge, making it less favorable for the player in the long run.

When to Consider Taking Insurance in Blackjack?

Determine the strategic moment to opt for insurance by mastering basic blackjack techniques. It’s a call made after assessing the composition of the deck. If you possess card counting skills, a strategic insurance bet can enhance the possibilities of a win. As stated before, a dealer’s upcard of Ace sets the stage for insurance bets.

However, don’t fall into the trap of viewing insurance as a safeguard against the dealer’s potential blackjack. Remember, it’s neither a defensive move nor a protective bet. Instead, consider it as a separate bet on whether the dealer will hit blackjack.

Probability plays a major role in this decision. Knowing how many 10s are left compared to non-10s can inform this choice. It’s best to take insurance at times when the probability of 10s in the deck significantly outweighs the non-10s.

When Not to Use Insurance?

If the Dealer’s Upcard isn’t an Ace

Unless an Ace appears as the dealer’s upcard, you shouldn’t consider insurance in your strategy. Your chances decrease drastically of profiting from insurance when an Ace isn’t in play in the dealer’s hand.

If High-Value Cards have been Depleted

Evaluate the deck’s composition. If many high-value cards (10s and face cards) have been dealt already, the possibility of the dealer scoring a blackjack diminishes. You’d benefit by not opting for insurance in such a scenario.

Neglecting Basic Blackjack Strategies

Inconsistent application of these strategies, particularly when you resort to hunches or gut feelings, could be detrimental. Insurance becomes a losing bet when you abandon the fundamentals.

Uninformed Decisions

One wrong call on insurance can cost you dearly. It’s imperative to have a complete understanding of the game before investing in an insurance bet. Inform yourself and make precise assessments before deciding to take insurance, rather than being swayed by fear of losing.

Common Mistakes and Misconceptions About Insurance

Believing Insurance Protects Your Main Bet

Insurance acts as a separate bet from your main wager. By taking insurance, you can recoup some of your losses, but you’re not guaranteed to win back everything you originally wagered.

Taking Insurance Without Proper Knowledge of Odds

Many players take insurance against a dealer’s Ace without considering how many cards in the deck could result in a blackjack for the dealer. In reality, only four out of thirteen cards give the dealer a blackjack, making the odds in favor of the casino. Inexperienced players might perceive the insurance bet as a safe choice when, in actuality, it’s a losing proposition over the long run.

Overreliance on Insurance to Salvage Losing Hands

You need to focus on improving your overall strategy and not merely rely on insurance to bail you out. Improving your understanding of basic strategy can lead to better playing decisions, ultimately increasing your chances of winning in the long run.

Advantages and Disadvantages of Insurance in Blackjack

Pros	Cons
Potential for Profit: If you are a card-counting expert, insurance can offer you lucrative returns.	High House Edge: 7.7%. It’s not always a profitable move in the long run, especially for beginners and players not skilled in card counting.
Risk Mitigation: When the dealer’s upcard is an Ace, and you’ve got a lower hand, it’s reassuring to have a backup plan.	A Distraction from Main Game: Unnecessarily focusing on insurance bets can distract you from the main game and the primary goal of beating the dealer’s hand.
Strategic Depth: Incorporating insurance bets into your playstyle adds more depth to your blackjack strategies.	Depletion of Bankroll: Impulsive insurance bets can drain your bankroll faster than average play.

Is Insurance available in all versions of Blackjack?

No. Variations such as European Blackjack don’t accommodate insurance bets. Here, the dealer doesn’t acquire a hole card until after you’ve made your moves, eliminating the possibility of insurance. However, versions like American Blackjack permit insurance bets provided the dealer’s upcard is an Ace.

Blackjack Versions	Insurance Availability
American Blackjack	Yes
Pontoon Blackjack	Yes
European Blackjack	No
Vegas Strip Blackjack	Yes
Pontoon Blackjack	Yes
Super Fun 21	Yes

Is there a difference between online and offline blackjack insurance rules?

The insurance rules are generally the same. However, different casinos or online platforms might have varying rules regarding insurance; thus, it’s essential to understand the rules of the game being played.

What is a five-card trick in Pontoon blackjack?

In Pontoon, the five-card trick is essentially an insurance bet. This bet offers advantages in certain situations, but like all insurance bets, it should be placed judiciously based on strategic considerations and an understanding of the game.