The Game of Risk: Understanding Insurance in Blackjack

Blackjack, also known as 21, is a popular card game played in casinos worldwide. While the objective is simple – beat the dealer by having a hand value closest to 21 without exceeding it – there are strategic nuances that players must grasp to increase their chances of success. One such strategic element is the option to take insurance, a side bet that introduces an additional layer of risk and reward to the game.

What is Insurance in Blackjack?

Insurance is a side bet offered to players when the dealer’s face-up card is an Ace. In this scenario, players have the opportunity to make a separate wager, typically half of their original bet, that the dealer’s hole card (the face-down card) is a 10-value card, completing a natural blackjack.

How Does it Work?

If a player decides to take insurance and the dealer indeed has a blackjack, the insurance bet pays out at 2:1, effectively compensating for the loss of the initial bet. However, if the dealer doesn’t have a blackjack, the insurance bet is lost, and the game continues as usual.

Pros and Cons of Taking Insurance:


Hedging Against Blackjack: The primary advantage of insurance is that it acts as a form of insurance against the possibility of the dealer having a natural blackjack. If the dealer does have a blackjack, the player can break even on the hand.

Risk Management: For some players, especially those who are risk-averse, insurance provides a way to mitigate potential losses in specific situations.


Negative Expected Value: From a mathematical perspective, insurance is generally considered a sucker bet. The odds of the dealer having a 10-value card in the hole are less than the 2:1 payout, resulting in a negative expected value for the insurance bet over the long term.

Reduced Winnings: While insurance can protect against a dealer blackjack, it can also limit potential winnings. Over time, consistently taking insurance can impact overall profitability.

Strategic Considerations:

Card Counting: Some advanced blackjack players incorporate card counting strategies to determine the likelihood of a 10-value card being in the deck. In situations where the deck is rich in 10s, taking insurance might be a more strategically sound decision.

Bankroll Management: Players should carefully consider their bankroll and overall strategy before opting for insurance. It’s crucial to weigh the potential benefits against the long-term impact on profitability.


Insurance in blackjack adds an interesting dimension to the game, introducing an element of risk management for players. While some may see it as a way to safeguard against dealer blackjacks, others view it as a less-than-optimal strategy due to its negative expected value. As with any aspect of blackjack, informed decision-making and a solid understanding of the game’s probabilities are key to maximizing success at the tables.