What Happens When You Buy Insurance in Blackjack?

When you sit down at a blackjack table, you may notice that the dealer offers insurance as an option for players who have been dealt a blackjack. But what exactly is insurance in blackjack and should you buy it? Let’s take a closer look.

First, let’s define what a blackjack is. A blackjack is when you are dealt an Ace and any card with a value of 10 (10, Jack, Queen, or King) as your first two cards. This hand is unbeatable unless the dealer also has a blackjack.

Now, let’s talk about insurance. When the dealer shows an Ace as their upcard (the card facing up), they will ask if anyone wants to buy insurance.

Insurance is essentially a side bet that the dealer has a 10-value card as their hole card (the face-down card). The cost of insurance is typically half of your original bet.

If you choose to buy insurance and the dealer does have a 10-value card as their hole card, the insurance bet pays out at 2:1. This means that if you bet $10 on insurance and the dealer has a blackjack, you would receive $20 in addition to losing your original $10 bet.

However, if the dealer does not have a 10-value card as their hole card and does not have a blackjack, you lose your insurance bet but can still play out your original hand.

So why would someone choose to buy insurance? The main reason is to protect against losing their entire original bet when the dealer has a blackjack. By buying insurance, you are essentially hedging your bets and limiting potential losses.

But should you actually buy insurance? The short answer is no. While it may seem like a smart move to protect against losing your entire bet, statistically speaking it is not worth it in the long run.

In fact, buying insurance has one of the highest house edges in all of blackjack. The house edge for insurance is typically around 7.5%. This means that over time, for every $100 that is bet on insurance, the player can expect to lose $7.50.

So while it may seem like a good idea to buy insurance in the moment, it is not a smart long-term strategy. Instead, focus on making smart basic strategy decisions and managing your bankroll effectively.

In conclusion, while insurance may seem like a tempting option when playing blackjack, it is not a wise long-term strategy due to its high house edge. Instead, focus on playing smart basic strategy and managing your bankroll effectively to increase your chances of coming out ahead in the game.