When it comes to blackjack, insurance is a type of bet that is available to the player when the dealer’s upcard is an Ace. Insurance is a side bet that costs half of the player’s original bet and pays 2-to-1 if the dealer has a blackjack.
In other words, if you place a $10 insurance bet and the dealer has a blackjack, you will win $20.
Although insurance seems like a good bet, it is actually a very bad bet for the player. This is because the probability of the dealer having a blackjack is only about 31%, which means that the player will lose their insurance bet 69% of the time.
So, how much does insurance pay on blackjack? Unfortunately, not enough to offset the high probability of losing. In fact, insurance is considered to be one of the worst bets in all of casino gambling.