Taking insurance in blackjack is a side bet that a player can make when the dealer’s face-up card is an ace. This bet is typically offered at a payout of 2:1 if the dealer’s second card is a 10-value or picture card, resulting in a blackjack. The insurance bet is a way for the player to protect their original bet in case the dealer does have a blackjack. However, the odds of the dealer having a blackjack are not in the player’s favor, and the insurance bet is generally considered to be a bad bet.
The Insurance bet is one of the worst bets you can make, and when offered to you the best strategy is to decline the bet.
The probability of the dealer having a blackjack when their up-card is an ace is around 9:4, or approximately 31%. This means that the dealer will have a blackjack about 4 times out of every 13 times they display an ace. The reward for an insurance bet is 2:1, which means that if the player bets $10 on insurance and the dealer has a blackjack, the player will receive a $20 payout. However, the expected value of the insurance bet is negative, implying that the player will lose money over time on this form of wager.
Financial Implications of Insurance Bets
In the long run, taking insurance in blackjack will cost the player money. The dealer must either have a 10 or a picture card in their hand for the player to win their insurance bet. A single deck contains 16 of those cards, so there’s only about a 30% chance of hitting one. If the player does hit one, they get a 2:1 return, but they still lose the bet most of the time. Therefore, in most cases, buying insurance is not worthwhile if the player wants to maximize their chances of winning. Instead, they should focus on basic blackjack strategy and making strategic decisions based on their own hand and the dealer’s up-card.
It’s also important to note that insurance is not a way to hedge against a strong hand. The strength of the player’s hand does not affect the probability of the dealer having a blackjack. Insurance is a side bet that is independent of the player’s hand and should be approached with caution.
In summary, taking insurance in blackjack is generally considered to be a bad bet due to the unfavorable odds and the negative expected value. Players should focus on basic blackjack strategy and avoid taking insurance unless they have a specific strategy that involves card counting or other advanced techniques.
