Blackjack Insurance

An optional blackjack side bet offered when the dealer shows an ace, wagering that the dealer has a ten-value hole card for a natural blackjack, paid at 2:1.

Definition

When the dealer's up-card is an ace, players may take Insurance for up to half their original bet. It wins at 2:1 if the dealer's hidden card is a ten-value card (completing a blackjack) and loses otherwise. Insurance is marketed as protection against the dealer's blackjack, but mathematically it is a separate bet on whether the next card is a ten. In a standard shoe only about four of every thirteen ranks are ten-valued, so the true odds are worse than the 2:1 payout, giving Insurance a house edge of roughly 6-7%. Basic strategy therefore advises never taking Insurance (the exception is a card counter who knows the remaining deck is unusually rich in tens).

Worked example

You bet $20 and get 20; the dealer shows an ace and offers Insurance. You could stake $10 that the hole card is a ten. If it is, Insurance pays $20 (2:1) but your main hand loses to the blackjack, roughly breaking you even. Across many hands, though, the hole card is a ten less often than the 2:1 payout implies, so consistently taking Insurance loses money.

Why it matters

For learners, Insurance is the textbook example of a bet that feels protective but is priced against you. For professionals, understanding why basic strategy rejects it is essential to explaining the game honestly and countering the 'even money' upsell on player blackjacks.

Related

Note: The roughly 6-7% house edge on Insurance depends on the number of decks and cards already seen; it becomes profitable only in specific card-counting situations.