There aren’t many rules to blackjack; the object of the game is to wager against the dealer and avoid scoring more than or less than 21. And that’s it. That is, until casinos decided to add side bets and an (unnecessary) puzzle to the gameplay. One such puzzle is blackjack insurance.
What Is insurance in Blackjack?
The most popular optional side bet in blackjack is blackjack insurance, which allows you to protect yourself from the dealer’s blackjack when they hold an ace as the upcard with askgamblers.com.
In essence, you are wagering that the dealer will deal a ten or a picture card as their second card, resulting in a total of 21 when you place the insurance bet. If the dealer hits a blackjack and pays you at 2:1 odds, you win.
You forfeit your insurance bet if their card is not a ten-value card.
The Math Behind Blackjack Insurance: What Are the Odds?
Let’s examine the mathematical basis of the insurance blackjack bet so you can make a more knowledgeable decision.
The ratio of ten-value cards to non-tens in an online blackjack game with a single deck and a $2 insurance bet is 16 (four tens, four jacks, four queens, and four kings) to 36.
Assume for the moment that the dealer asks if you would like to place the insurance bet while holding an ace as the upcard. If we ignore the makeup of your hand, the ratio of non-ten-value cards to ten-value cards is now 35 to 16. Stated differently:
You lose $70 (the total number of times the dealer doesn’t have a ten-value card) if you make the $2 insurance wager 35 times.
If you place the identical stake 16 times and the dealer has a ten in the hole, you will win $64 (assumed payout of 2:1).
You would have a $6 net loss if you always chose insurance (you would have lost $70 against $64 in wins). The house edge, or 5.9%, is what we obtain when we divide the $6 in profits by the $102 investment to determine the disadvantage.
The payback odds for blackjack insurance, as you can see, are not as high as the actual odds of getting a ten-value card; if they were, the house would win slightly more than $4 for each correct wager. However, it doesn’t, which indicates that the odds are stacked in favor of the casino.
Should You Insure Your Hand?
The insurance bet is not specifically discouraged by blackjack regulations. But if any of the following scenarios sound familiar to you, use basic algebra and common sense to figure out what to do next:
If You Have a Low Hand
If your hand is low, like 16 or lower, you might think about getting insurance. You will probably bust if you draw another card, in which case the insurance wager can partially offset your losses.
If You Have a Good Hand
Assume the dealer holds an ace and you have a twenty. Some players might suggest insurance because it will be difficult for the dealer to beat your 20 even if they don’t pull a 10 in the hole. You won’t lose a wager on a strong hand either.
Other Types of Blackjack Side Bets
If You Hold an Even Money Blackjack HandYou are in “even money” territory (almost identical to an insurance bet) if you have a blackjack and the dealer lands an ace.
Assuming the dealer lands a blackjack and you staked $10 on a $5 insurance risk, you will profit $10 on the 2-1 payout. If the dealer fails, you lose your $5 insurance wager but receive $15 on the 3-2 payment for a net gain of $10.
In order for this to be correct, the dealer must not take out a 10-value card; in less than 31% of cases, the dealer will receive the correct card. You stand to gain $15 on your initial $10 bet if they don’t tie your blackjack. You can see that the chances are stacked against you in this scenario, so there’s really no reason to risk those $5.
For more information, visit https://www.askgamblers.com/gambling-news/blog/blackjack-insurance
