What Is Blackjack Insurance?

Blackjack in Australia has never been more popular. Thanks to the rise of real money online casinos in recent years, the card game has become widely accessible, and more and more people are starting to play it. Whether you’re playing blackjack online or in person, the game has some strategic elements that can help boost your chances of winning. 

The beauty of blackjack is that it can be straightforward, but it can also have extra side bets that you can place to make the gameplay more exciting. One of these side bets is called blackjack insurance, and essentially, it’s a bet on the dealer getting natural blackjack (a total of exactly 21 with the first two cards). 

Insurance allows you to bet half your stake on this if the dealer’s up card is an ace, so you could get a payout even if the dealer beats you.

Our comprehensive Betsquare guide will tell you everything you need to know about blackjack insurance, its pros and cons, and successfully place this side bet.

Key Points

Blackjack insurance is an optional side bet so that you won’t find it at every table. Nonetheless, it’s worth knowing how it works and when it’s a good idea to use the feature, just in case it might benefit your gameplay. Here’s what you’ll learn in this article:

• What is insurance in blackjack?
• When do players take insurance in blackjack?
• Pros & cons of blackjack insurance

What Is Insurance in Blackjack?

Before we get into the concept of insurance, we need to give you a quick refresher on the basic rules of playing blackjack. As you probably know, the aim is to get a hand closer to 21 than the dealer’s without going over this total.

If a hand totals exactly 21 with just two cards, that’s referred to as natural blackjack, and whoever has that hand (dealer or player) will win. It’s tricky to get natural blackjack because it requires an ace and a ten or picture card, as that’s the only way two cards can total 21. 

The first thing to know about insurance in blackjack is that it’s a side bet. Side bets are just extra bets that you can place during gameplay and function separately from your main bets. This means that even if you have a losing hand, you might be able to get some money from a winning side bet. 

Not all variations of blackjack offer insurance as an optional side bet, but the ones that do will allow you to place the bet if the dealer’s up card is an ace. This means there’s a chance the dealer will get natural blackjack if their other card is a picture card. 

The insurance bet allows players to stake half their original bet on the dealer to get a natural blackjack, and if that happens, you’ll be paid out your original stake amount so that you won’t lose any money. If the dealer doesn’t get blackjack, the game will continue, and you might still be able to win based on your hand. 

Here’s how bets might play out with insurance:

Initial bet amount	Dealer has blackjack?	Player won?	Total profit
$10	Yes	No	$0
$10	No	No	$15
$10	No	Yes	$5

 

 

When Do Players Take Insurance in Blackjack?

If you take out insurance in blackjack, the payout will be 2:1 if the dealer’s hand is precisely 21 after the first two cards. For this reason, you might immediately think it’s a good idea to place this blackjack side bet every time it’s available. But that’s not necessarily the case.

Let’s look at the actual odds of an insurance bet winning. As we mentioned before, the only way the dealer can get natural blackjack is to have an ace and a picture card or 10. In a standard deck, 20 possible cards could pair with the ace to complete blackjack. In other words, the odds are against the player winning the insurance bet. 

But don’t get too disheartened yet – when you play blackjack online or at a land-based casino, there are still a few scenarios where taking out an insurance bet might be a good idea. 

Your Hand Is Low

One thing to remember when you’re playing blackjack is that you can immediately see both of your cards as soon as they’re dealt, so you’ll already know whether you have blackjack before you even see the dealer’s up card. 

For that reason, if your two cards total a low hand, you’ll already know that you won’t be able to win against the dealer’s natural blackjack. Rather than losing money in that case, you might want to take out a blackjack insurance bet if the dealer has an ace because it’s the best way to recover your loss. 

Not every blackjack table has an insurance option, so checking if you plan to use this strategy before playing is important. 

The Dealer Shows an Ace

You can only take out blackjack insurance when the dealer shows an ace as their up card. This is because that’s the first step towards the dealer achieving natural blackjack.

But remember, even if the dealer has an ace, that doesn’t mean they have a great chance of getting blackjack (and hence of your bet winning). The dealer still needs a picture card or ten to make up the value. 

You’ll be offered a different insurance bet if your hand already has blackjack. This is known as taking even money, and you’ll be paid back your original bet amount no matter what the dealer’s other card ends up being. 

It’s important to remember that blackjack insurance isn’t just for in-person casino games; you’ll also find online variations that have the option. For example, suppose you’re playing live blackjack at an online casino. In that case, the entire gameplay experience is the same as being in a real casino, right down to placing your insurance bets. 

The Pros and Cons of Taking Blackjack Insurance

Insurance is one of the possible blackjack side bets that you might be interested in placing, and just like all side bets, it has pros and cons. 

Additionally, insurance can help minimise potential risks and even win you some extra money. However, the downside is that an insurance bet is unlikely to win, increasing the game’s house edge. 

Insurance is very similar whether you play at a land-based or online casino. Still, it’s worth noting that different online versions might have slightly different rules or methods, so it’s a good idea to take a quick look at the specific table rules before you play. 

The Advantages of Blackjack Insurance

If you’re playing at a table that offers insurance, it’s up to you to decide whether you want to take advantage of it. Insurance has a few benefits, including protection against the dealer beating you and potential extra blackjack side bet payouts, as we explain below:

Protection against dealer blackjack

This is the most crucial advantage of blackjack insurance. Under normal circumstances, the dealer having natural blackjack would be bad for you as a player because that would mean your hand loses automatically. 

But if you have insurance, you can still get your original stake amount back, even if the dealer wins. In other words, you won’t lose any money. Taking out an insurance bet is particularly advantageous if the stakes are high and you’re interested in mitigating a significant potential loss.

Extra payout

There’s a scenario in which you might get paid out from the insurance bet, plus you might not lose any money from your original bet if there’s a push. 

A push is just another word for a tie, and in this case, it would require both you and the dealer to get natural blackjack. As you already know what your cards are, you might want to take out an insurance bet if you think it’s likely that you’ll tie with the dealer.

Overall strategy

When you’re playing blackjack, you must master the basics of strategy. Blackjack insurance isn’t a quick or guaranteed way to ensure that you win. 

Still, it can play into your overall strategy, for example, in helping minimise risks or taking advantage of extra payouts when you already have blackjack.

The Disadvantages of Blackjack Insurance

While blackjack insurance might always sound like a good idea, that’s not necessarily true. This side bet comes with a few drawbacks as well:

Higher house edge

The house edge is the money that the casino keeps, and the higher this is, the worse for the player. The blackjack house edge tends to be low compared to other casino games, and the more you apply strategy, the lower the house edge will be. 

When you place an insurance bet, the house edge of the game increases, so bear this in mind when working out your optimum blackjack strategy.

Negative expected value

The whole idea of the insurance bet is that the dealer’s second card needs to be a 10. As this is unlikely, you’ll likely lose money if you keep placing insurance bets over time.

 

Impact on bankroll

Managing your bankroll is of utmost importance in blackjack because you want to ensure you’re not burning through all your money immediately – because then how will you keep playing? You might deplete your resources quicker by staking extra money on side bets like insurance, especially if you’re unlucky enough to go on a losing streak. 

Added complexity

Especially if you’re new to playing blackjack, you might prefer to master the basic strategy before you decide to start placing side bets. Concentrating on extra bets can distract you from focusing on your plan, so your overall game might suffer. 

Summary

Insurance side bets can form an exciting part of land-based or online blackjack, as they can add an extra layer of thrill and even help you minimise risks. But it’s also important to remember that insurance bets have a low likelihood of winning and that they have a high house edge.

If you’re keen to try out insurance bets, the best place to do it is at one of our top real-money online casinos – plenty are available for Australian players, and they all have a great selection of blackjack options. Don’t forget to claim your welcome bonus when you sign up to make your money go even further. 

FAQ

When should I consider taking insurance in blackjack?

It’s not always a good idea to take out blackjack insurance because this side bet doesn’t have favourable odds, and it increases the house edge. However, if you have a low hand or want to minimise your losses, you might want to consider taking out an insurance bet. 

How much does the insurance bet pay?

An insurance bet pays 2:1 if the dealer gets natural blackjack – in other words if they have an ace as their up card and a picture card or ten. If you place an insurance bet, you’ll get your original stake back, even if your main bet loses, thanks to the dealer’s natural blackjack. 

Is insurance a good strategy for beginners?

Insurance is not the best strategy for new blackjack players, as it comes with risks and doesn’t guarantee profit. There’s a chance that you’ll lose more money due to the unfavourable odds and the higher house edge, and it might be difficult for beginners to concentrate on both the side bets and main bets simultaneously. It’s better to master basic blackjack strategy before you move on to insurance. 

How much can I bet on insurance?

You can bet up to half your original stake on an insurance bet, but the actual amount will depend on the table where you’re playing. For example, some online blackjack games allow you to play for about $5, but there are also high roller tables where the stakes start in the hundreds.