Blackjack insurance: Safety net or risky gamble?

Blackjack is a fast-paced game of strategy where every decision counts. Among these decisions is the option to take ‘insurance’—a side bet offered when the dealer shows an Ace. While it is a way to guard your hand if you think the croupier may have a blackjack, this side bet isn’t as straightforward as it seems. Is it worth the risk?

In this guide, we’ll break down how the blackjack insurance bet works, its expected value, and when it might (or might not) be a smart choice to make at the table. Read on to sharpen your blackjack strategy and make informed bets every time you play.

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What is blackjack insurance?

Blackjack insurance is a side bet. You can place it only when the dealer shows an Ace as their first card. This bet is a way to protect your main hand in case the dealer’s next card is worth 10, like a 10, Jack, Queen, or King, which would give them a blackjack.

This side bet is not part of the main game, but you can accept or skip it. If you take it, the bet will cost half your main bet. For instance, if your main bet is 10 USDT, the insurance side bet will be 5 USDT.

Insurance bet payout

Now, if the dealer does have blackjack, this bet pays 2:1, which means you get back twice your side bet. So with a 5 USDT side bet, you win 10 USDT. This win helps make up for the main bet you just lost. If the dealer doesn’t have blackjack, you lose the side bet, and the round goes on like normal.

Odds of an insurance bet

When you place an insurance bet, the odds of winning depend on whether the dealer has a Blackjack. If the dealer has an Ace, the chance that their second card will be worth 10 points (a blackjack) is about 31.5%. This means there's about a one in three chance that the dealer will have 21.

The house edge

Although the insurance bet has a 31.5% chance of winning, the odds still favour the house. With a house edge of around 8.5%, it may not give the best value over time. While it can help in some hands, most players find it's not the top pick for regular play.

How does insurance work in blackjack?

When the dealer shows an Ace as their face-up card, they will offer blackjack insurance to the players. If you decide to take the insurance bet, you must place half the amount of your initial bet on the insurance line. This side bet is separate from your main hand.

How is it settled

Once you place the insurance bet, the dealer checks their second card. Here's the outcome based on the dealer's hand:

• If the dealer has blackjack: You win the insurance bet and receive a 2:1 payout on the insurance bet, but you lose your main hand unless you also have a blackjack, which results in a push.
• If the dealer doesn’t have blackjack: You lose the insurance bet. Your main hand is then played out as usual, and you could win or lose the initial bet based on the result of the round.

Pros and cons of blackjack insurance

While it might seem like a way to protect your bet, it’s not always in your favour due to the high house edge. Some players may find it helpful, while others may avoid it.

Take a look at the benefits and drawbacks of blackjack insurance to see if it fits your playing style:

Blackjack insurance advantages

Protects if the dealer has a blackjack

The main benefit of blackjack insurance is that it protects your initial bet. If the dealer's up card is an Ace, and they happen to have a 10-value hole card, you’re at risk of losing your entire wager. By placing an insurance bet, you are hedging against the chance of the dealer having a blackjack, helping to cover that loss.

Offers a 2:1 payout if the dealer has blackjack

If the dealer turns out to have a blackjack, the insurance bet pays out at 2 to 1. This means that you’ll get back twice the amount you placed on the insurance side bet. While you lose your original wager, this payout helps to balance the loss from your main hand, keeping your overall losses lower.

Can help manage losses in the short term

For players who want to minimise their losses, blackjack insurance can act as a form of damage control. If the dealer does have a blackjack, you will at least recoup some of your losses from your main hand. This can provide some relief and help reduce the financial blow in the short run, mainly if you’re unlucky enough to lose several rounds in a row.

Blackjack insurance disadvantages

Negative expected value for the player

The biggest downside to blackjack insurance is that the odds are not in the player's favour. The chances of the dealer having a blackjack with an Ace showing are around 31.5%, meaning the chances of the insurance bet winning are lower than losing.

Over time, consistently placing insurance bets will likely result in a negative expected value, meaning you’re expected to lose money in the long run.

Higher house edge, especially with more decks

The house edge for blackjack insurance is much higher than the standard blackjack game. When you take insurance, you’re betting on the dealer having blackjack, which gives the casino a great advantage.

In single-deck games, the house edge for insurance is about 7.5%, and this increases even more when multiple decks are used, with a typical six-deck game pushing the house edge to around 8.5%. This means you’re giving more of your money to the house with every insurance bet you place.

How to use insurance in blackjack

In this guide, we’ll show you how to place an insurance bet using the game Bitcasino Blackjack by OneTouch in demo mode. By learning how to use this bet, you can protect your main bet if the dealer has a blackjack.

Check out the steps below to understand how it works:

1. Start the game: First, place your main bet on the blackjack table and start the game. In this guide, we’ll use a 100 USDT bet. Once you place your bet, you will get two cards, and the dealer will show one card face-up.

2. Wait for the dealer's Ace: The insurance option is only offered when the dealer’s face-up card is an Ace. This means the dealer could have a blackjack if their other card is worth 10 (a 10, Jack, Queen, or King).

3. Choose to take insurance: Once the dealer shows an Ace, you will have the choice to place an insurance bet.

4. Place your insurance bet: To make the insurance bet, click on the insurance line on the table. The insurance bet can be up to half of your main bet. For example, if you bet 100 USDT on your main hand, you can bet up to 50 USDT on insurance.

5. Wait for the outcome: After placing the bet, the game continues. If the dealer has a blackjack, your insurance bet pays 2:1. This means you win twice the amount of your insurance bet, which helps cover your original hand loss.

However, if the dealer doesn’t have a blackjack, you lose the insurance bet. The main hand continues, and you will still have the chance to win or lose your initial bet.

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Four types of blackjack insurance

There are different scenarios when you use side bets, each with its own blackjack insurance rules and payout system. Understanding each option can help you make a more informed decision about whether the insurance bet is a good choice for you.

Here are the four types and how each one works:

If your insurance bet is right and you lose to your opponent in the main game

This is the best case for the player when taking the insurance bet. Let’s say you place a main bet of 40 USDT. The dealer shows an Ace, so you choose to place an insurance bet of 20 USDT.

Now, let’s do the math. You spent 60 USDT —40 on the main hand and 20 on the insurance. Since the dealer had blackjack, you lost the 40 USDT from your main hand. However, you got back 60 USDT from the insurance bet (40 profit + 20 stake).

In the end, you break even. You spent 60 USDT and got 60 USDT back. You didn’t make a profit, but didn’t lose money either.

If your insurance bet is wrong, but you win the main game

Say you bet 20 USDT on your main hand and 10 USDT on the insurance. The dealer shows an Ace, but doesn’t have blackjack. Then, you win the main game, which gives you a 20 USDT profit. Yet, since the insurance bet loses, you lose 10 USDT.

Let’s break that down:

• Total spent = 30 USDT (20 main + 10 insurance)
• Total won = 40 USDT (your 20 bet + 20 win from main hand)
• Final profit = 10 USDT.

If you hadn’t placed that 10 USDT on insurance, you would have made 20 USDT in profit instead.

This shows that even when you win the hand, a wrong call on the insurance can lower your total gain.

If your insurance bet doesn’t work and you lose to your opponent in the main game

This is a bad case for the player. For instance, you place 30 USDT in your main hand and 15 USDT in the insurance. The dealer shows an Ace, so you hope for the best. Unfortunately, the dealer doesn’t have blackjack, so the insurance bet is lost. Then you also lose the main game.

Now, let’s check the numbers:

• Total bet: 45 USDT (30 on the main hand + 15 on the insurance)
• Total won: 0
• Final result: Loss of 45 USDT

In this case, both your main hand and your insurance bet failed. If you hadn’t taken the insurance bet, you would have only lost 30 USDT. 

This is why it’s smart to think twice before placing an insurance bet. If you’re not sure or your hand is weak, the risk of losing both bets is high.

If the player gets a blackjack and places an insurance bet

This is a rare but fun case. Let’s say you have a blackjack and the dealer shows an Ace too, so you choose to place an insurance bet of 10 USDT.

Now, two things can happen:

The dealer also has blackjack.

• You don’t win or lose your main bet because the hand is a tie.
• The insurance bet pays 2:1, so you win 20 USDT from the insurance bet.
• Since your main bet doesn’t win or lose, your net gain is 20 USDT (from the insurance bet only).

The dealer doesn’t have blackjack.

• You win the main hand because you have blackjack.
• Some games pay 3:2 for blackjack, so you win 30 USDT.
• You lose the 10 USDT you placed on insurance.
• Your net gain is 20 USDT (since you won 30 USDT from the main bet but lost 10 USDT from the insurance).

This case shows that placing insurance with a strong hand like blackjack can still make sense in some spots, but it can also cut your win short if the dealer doesn’t have blackjack. So, it's a trade-off between safety and max profit.

Try playing blackjack with insurance bets at Bitcasino!

If you're looking for a safe and fun place to play blackjack, Bitcasino is a great place to start! Our casino offers a wide range of blackjack games, fast payments, and great bonuses for a top-quality gaming experience.

Getting started is easy — just sign up and deposit crypto funds like Bitcoin (BTC), Litecoin (LTC), and Ethereum (ETH). Once you have gaming money, you can start placing main and side bets, like insurance, in our blackjack games. 

Below are some of the exciting blackjack games you can try on the site:

Blackjack Classic

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Bombay Club Blackjack

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To insure or not in blackjack is your call

The blackjack insurance gives you a quick chance to protect your hand when the dealer shows an Ace, making it seem like a safety net. While the 2:1 payout sounds tempting, the odds of the croupier having blackjack, less than one in three, don’t justify the risk. 

That said, blackjack is as much about strategy as it is about entertainment. If you’re experimenting with new tactics, playing for fun, or simply looking to limit losses in a specific round, the insurance bet can add an exciting twist to your game. Try out Bitcasino blackjack games today and see how the insurance bet works in action — just remember to bet smart and have fun!

Frequently Asked Questions (FAQs)

What is insurance in blackjack?

Insurance is a side bet you can make if the dealer shows an Ace. You bet half your main bet. If the dealer has blackjack, you win this side bet.

Is blackjack insurance betting worth it?

Blackjack insurance bets can seem useful, but come with a high risk. The payout is only 2:1, and the odds of the dealer having blackjack are low, making it less likely to make a profit in the long run.

Should you take insurance in blackjack?

It depends on your risk tolerance. Insurance can be an option if you're overly cautious and want to protect your bet against the dealer's blackjack. However, using it too often can increase your losses over time.

When to use blackjack insurance?

Use insurance when the dealer shows an Ace, as it gives you a chance to protect your main bet in case the dealer has a blackjack. However, it’s crucial to remember to only use it if you believe the dealer is likely to have a 10-value card in the hole.

What happens if I win the insurance bet?

If you win the insurance bet, you receive a 2:1 payout on your insurance stake. This helps recover the loss from your main bet if the dealer has blackjack.

Can insurance be profitable with card counting?

Card counting can improve your chances of predicting when the dealer has a blackjack. If you count cards and know that a lot of 10-value cards remain, insurance might become a more profitable bet.

Should I buy insurance in blackjack?

You can buy insurance in blackjack when the dealer shows an Ace. However, this bet will not help most times. Many say it’s not worth it unless you count cards or play for big wins.

Words by: Andrea Narido Dizon