Understanding Blackjack Insurance: Is It Worth It?

What is Blackjack Insurance?

In most variations of Blackjack, when the Dealer shows an Ace as their face-up card, players have the option to take ‘Insurance’. This side bet is a wager that the Dealer’s hidden card is a 10, resulting in Blackjack. Players can choose to insure all, some, or none of their hands, with the insurance bet amounting to half their initial stake. Winning the Insurance bet pays 2 to 1, but if the Dealer doesn’t have Blackjack, the bet is lost.

Why Insurance Is Often a Bad Bet

Taking Insurance might seem like a cautious approach, but let’s break down why it’s generally considered a poor bet:

• Assuming a single deck, 16 out of 49 unseen cards could give the Dealer Blackjack.
• With an initial bet of €2, an Insurance bet would be €1.
• Calculating the odds shows a net loss over time, with a slight average loss per hand.
• In a six-deck game, the house edge increases to 7.4%, making Insurance even less favorable.

The Case of Having Blackjack Yourself

If you have Blackjack and opt for Insurance:

• If the Dealer also has Blackjack, your main bet pushes, but you win the Insurance bet.
• If the Dealer doesn’t have Blackjack, you win the main bet but lose the Insurance bet.
• In either scenario, you roughly break even, despite having Blackjack.

Conclusion

Blackjack is a game of mathematics with optimal strategies for different situations. Taking Insurance typically falls under a suboptimal move due to the high house edge. It’s generally advisable to avoid Insurance bets, as they do not favor the player in the long run.