What Is Insurance in Blackjack?

When the dealer shows an Ace, you will be asked if you want insurance. It sounds protective, but it is really a side bet — and for the basic-strategy player it is one of the worst bets on the table. Here is exactly what it is, what it costs, and when (if ever) to take it.

How insurance works

Insurance is a side bet, offered only when the dealer’s upcard is an Ace, that the dealer’s hidden card is a 10-value card. You may bet up to half your original wager. If the dealer turns over a blackjack, insurance pays 2:1; if they do not, you lose the insurance bet and play your hand normally.

The idea is that it “insures” you against the dealer having blackjack: the 2:1 payout on the half-size side bet exactly cancels the loss of your full main bet, so you break even on the round. That sounds reasonable — until you look at the odds.

Why basic strategy says to decline

The insurance bet is really a bet on whether the hole card is a ten. In a fresh shoe, 16 of every 52 cards are 10-value, so the dealer completes blackjack about 30.8% of the time after showing an Ace. But the 2:1 payout only breaks even if the dealer has blackjack one time in three (33.3%). That gap hands the house an edge of roughly 7% on the insurance bet — far worse than the 0.5% edge of the main game.

In plain terms: insurance loses money over time. It does not matter whether you currently hold a strong hand or a weak one — the bet is judged purely on the dealer’s hole card, and the math is against you. Always decline.

“Even money” is the same trap

If you are dealt a blackjack and the dealer shows an Ace, you may be offered even money — a guaranteed 1:1 payout now, instead of the 3:2 you would get if the dealer does not have blackjack (or a push if they do). Taking even money is mathematically identical to insuring your blackjack, and it carries the same house edge. Decline it and take the full 3:2; you will come out ahead in the long run.

The one exception: card counting

Insurance flips from worst bet to best deviation when you are counting cards. When the remaining deck is rich in 10s — a true count of +3 or higher — the dealer is more likely than usual to have the 10 in the hole, and the bet becomes profitable. In fact, insurance at +3 is the single most valuable index play in blackjack. But without an accurate count, the rule is simple: never take insurance.

Practice spotting the situation for free on our blackjack games — the insurance prompt appears exactly as it would in a casino, with no money at risk.

Frequently asked questions

What is insurance in blackjack?

Insurance is an optional side bet offered when the dealer's upcard is an Ace. You can wager up to half your original bet that the dealer has a 10-value hole card (a blackjack). If the dealer does have blackjack, insurance pays 2:1, which offsets the loss of your main bet.

Should you take insurance in blackjack?

No. Under basic strategy you should always decline insurance. The dealer completes a blackjack only about 30.8% of the time after showing an Ace, while the bet pays as if it were closer to 33%, giving the house an edge of roughly 7%. Over time, taking insurance loses money.

What is "even money"?

If you have a blackjack and the dealer shows an Ace, the dealer may offer "even money" — a guaranteed 1:1 payout instead of risking a push. It is mathematically identical to taking insurance on your blackjack, and basic strategy says to decline it and take your chances at the full 3:2.

When is taking insurance correct?

Only when you are counting cards and the deck is rich in 10-value cards. Insurance becomes a profitable bet at a true count of +3 or higher, which is why it is the single most valuable card-counting deviation. Without a count, always decline.