What is Blackjack Insurance, Example, Risks, and Odds

Do you know what is blackjack insurance that all players need to know before playing? If you have no idea about it, then you should read this article. Blackjack insurance is a side bet that is offered in specific variations of the game. 

It will give the players a chance to keep themselves against the dealer getting a blackjack. This brief article will give you an explanation of what blackjack insurance is and how it will work. We will also look at when it is the perfect time to take out insurance and when it is best to prevent it. 


  • An optional side bet, that can be taking when the dealer’s up card in an Ace
  • It will pay 2 – 1
  • The risk of it is more costly

What is Blackjack Insurance You Should Know?

For those of you who are wondering what is blackjack insurance, it is an optional side bet in the game that is offered when the dealer’s up card is an Ace. It will pay 2-1 if the dealer has a natural blackjack (21). The player might place a separate bet equal to half of the original bet on the insurance line. 

If the dealer doesn’t have blackjack, the player will lose their insurance bet and the game will continue as usual. In addition, insurance is generally considered a bad bet since the odds of the dealer having a natural blackjack are small, and you are likely to lose more money than you will win with the insurance bet. 

However, it is a good strategy to add some additional coverage if you are playing conservatively, or want to make your bankroll stretch a little further. Well, that is what is blackjack insurance.  

The Blackjack Insurance Example

After knowing what is blackjack insurance, let’s see together the example of this betting strategy. As a player, of course you need to know complete information that can help you to increase your winning. 

Winning Blackjack Insurance

  • You start the game by placing a bet for MYR 100
  • You are dealt a 9 and a Jack
  • The dealer’s up card is an Ace
  • You choose insurance for an extra MYR 50
  • The dealer’s second card is showed to be a 10 point card, giving them blackjack
  • You win your insurance bet and break even, making MYR 150 in this case

Losing Blackjack Insurance

  • You start a game for a bet MYR 100
  • You are dealt a 10 an a 8
  • The dealer’s up card is an Ace
  • You choose the insurance for an extra MYR 50
  • The dealer’s second card is showed to be a 4
  • You lose your insurance bet, however, continue the hand to see if the dealer can bet your 18 hand total

💡 Tips
This side bet is commonly better for more experienced players as knowing basic strategy and card-counting can really help push the odds into your favor and also paying insurance is worthwhile. 

The Perfect Time to Take Insurance in Blackjack

As you know what is blackjack insurance, the perfect time to take it is when the dealer’s up card is an Ace, and you have a good hand yourself of 15 or higher. This way, even if you lose your insurance bet, you may still be able to win the round. 

Furthermore, players can lose more than half of the insurance bets made and since the bet pays out 2 – 1. It can turn into a losing proposition. Statistically, the insurance bets can lose you money in the long time, especially if you are not familiar with card-counting or the basic strategy. 

Does Classic Blackjack Have This Type of Side Bet?

Now, you have figured out what is blackjack insurance. However, it is not as common to find this side bet available in classic blackjack games. Because this particular type of the game uses only 1 deck of cards, that means there is a reduced chance of the dealer having a blackjack. 

However, it is still possible to find some types of classic blackjack that offer insurance as a side bet. These versions commonly use 6 or 8 decks of card instead of just one. Thus, it is worth keeping an eye out for these if you are keen to make use of this bonus.

The Risk of Taking Insurance in Blackjack

As you know what is blackjack insurance, it is often seen as a way of keeping yourself against losses. However, in blackjack, it will come with several risks that you need to pay attention to before taking the plunge. 

First thing you need to know, the insurance bet will always cost you money. Even if the dealer has a blackjack, your side bet will lose, leaving you worse off than if you had not taken it in the first place. It means that insurance is only really profitable if you are certain that the dealer does have a blackjack and you are willing to pay the additional cost. 

Secondly, when taking insurance, you will only keep yourself from losses on  one hand, not all hands at the table. For instance, if the dealer has a blackjack but you have a decent hand, you will still lose money even if you take the insurance. It means that even if you do manage to break or make a small win, it is not worth it in the long run. 

Finally about what is blackjack insurance risking, you are essentially betting on something that is not in your control, whether or not the dealer has a blackjack. It means that taking insurance should be seen as a gamble rather than a surefire strategy of making a return. 

The Odds of an Insurance Bet in Blackjack

While understanding what is blackjack insurance, you must be also wondering about the odds. Well, the odds of this bet winning depend on the probability that the dealer will have a blackjack. 

The chance of the dealer having a blackjack with an Ace up card is 31.5%. It means that if you make an insurance bet, your expected return is -48.7% as you will lose 48.7% of the time and win 31.5% of the time. 

Therefore, it is commonly not recommended to take insurance in blackjack as the house edge is too high (8.5%). Unless you have no idea to believe that the dealer has a blackjack, you should prevent taking insurance.

This side bet can also be pricey if you don’t have a good understanding when to take them. Therefore, it is best to know what you’re doing before placing one. Alright, now you completely know what is blackjack insurance.

Final Words

In conclusion, what is blackjack insurance, this is an optional side bet that is offered when the dealer’s up card is an Ace. You will be paid 2 – 1 if the dealer has natural blackjack. Well, it may be a bit easy to understand this betting strategy. However, you need to do lots of practice when taking insurance in blackjack. 


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