Insurance Bet: Meaning and Definition
An insurance bet is a side bet when playing blackjack that punters make to protect themselves from the dealer’s hand when the upcard is an Ace.
Summary
An insurance bet is an optional extra bet in blackjack that’s worth half the price of the original bet. It is an insurance bet a player makes against the dealer getting a natural blackjack in the next hand when the dealer's upcard is an Ace.
What Is an Insurance Bet?
Players have a choice of whether or not to purchase an insurance bet when the upcard is an Ace to protect themselves from the dealer’s blackjack. The dealer will offer the insurance bet, and it’s up to the player to accept or reject it.
When the upcard is an ace, the insurance bet will kick in if the dealer’s face-down card is a 10-value card (a 10, Jack, Queen or a King) and that results in a blackjack. In the case of blackjack, the insurance bet pays 2-1.
It is not to be confused with an insurance bet in horse racing that returns your stake if the horse you wagered on doesn’t win, but still places.
Why It's Important
The insurance bet is important exactly because of what it represents - the insurance against the dealer’s natural blackjack. It is a safety net that more experienced players don’t commonly use because it often doesn’t pay off for them.
It is the less experienced players who take advantage of the insurance because it gives them a certain level of security. While it may not pay out financially, it can be useful experience-wise.
How It's Used
When the upcard is an Ace, the dealer offers the player the possibility to make an insurance bet at half the price of their regular bet. If a player can assess the probability of the dealer getting blackjack in the next hand, that can help them decide whether to take the offer.
A common opinion is that making insurance bets is not a financially sound tactic in the long run, as it often loses in practice. If it loses, the main bet continues as usual, but the insurance bet is lost. If that repeats, it can lead to more financial loss than gain.
