There are few blackjack rules; the game’s object is to wager against the dealer and avoid scoring more than or less than 21. And that’s it. That is, until casinos decided to add side bets and an (unnecessary) puzzle to the gameplay. One such problem is blackjack insurance.
What Does Blackjack Insurance Mean?
The most popular optional side bet in blackjack is blackjack insurance, which protects you from the dealer’s blackjack when they hold an ace as the upcard.
In essence, you are wagering that the dealer will deal a ten or a picture card as their second card, resulting in a total of 21 when you place the insurance bet. You win if the dealer hits a blackjack and pays you at 2:1 odds.
You can only win your insurance bet if their card is a ten-value card.
What Are the Odds and the Math Behind Blackjack Insurance?
Let’s examine the mathematical basis of the blackjack bet for Insurance so you can make a more knowledgeable decision.
The ratio of ten-value cards to non-tens in an online blackjack game with a single deck and a $2 insurance bet is 16 (four tens, four jacks, four queens, and four kings) to 36.
Assume the dealer asks if you want to place the insurance bet while holding an ace as the upcard. If we ignore the makeup of your hand, the ratio of non-ten-value cards to ten-value cards is now 35 to 16. Stated differently:
- If you make the $2 insurance wager 35 times, you lose $70 (the total number of times the dealer doesn’t have a ten-value card).
- If you place the identical stake 16 times and the dealer has a ten in the hole, you will win $64 (assumed payout of 2:1).
If you always chose Insurance, you would have a $6 net loss (you would have lost $70 against $64 in wins). The house edge, or 5.9%, is what we obtain when we divide the $6 in profits by the $102 investment to determine the disadvantage.
As you can see, the payback odds for blackjack insurance are not as high as the actual odds of getting a ten-value card; if they were, the house would win slightly more than $4 for each correct wager. However, it doesn’t, which indicates that the odds are stacked in favour of the casino.
Does Insurance Cover Your Hand?
The insurance bet is not specifically discouraged by blackjack regulations. But if any of the following scenarios sound familiar to you, use basic algebra and common sense to figure out what to do next:
If Your Hand Is Low
You should consider getting Insurance at about 16 or lower. If you draw another card, you will probably bust, in which case the insurance wager can partially offset your losses.
If Your Hand Is Good
Assume the dealer holds an ace and you have a twenty. Some players might suggest Insurance because it will be difficult for the dealer to beat your 20 even if they don’t pull a 10 in the hole. You won’t lose a wager on a strong hand, either.
The dealer’s chances of getting a ten in the hole are decreased if you have a 20, though, because two of the eight ten-value cards are already in play. The house edge rises to an incredible 14.5% in such circumstances, making a good hand the worst time to think about hand insurance.
If You Hold an Even Money Blackjack Hand
If you have a blackjack and the dealer lands an ace, you are in “even money” territory (almost identical to an insurance bet).
Assuming the dealer lands a blackjack and you staked $10 on a $5 insurance risk, you will profit $10 on the 2-1 blackjack insurance payout. If the dealer fails, you lose your $5 insurance wager but receive $15 on the 3-2 payment for a net gain of $10.
For this to be correct, the dealer must not take out a 10-value card; in less than 31% of cases, the dealer will receive the correct card. You will gain $15 on your initial $10 bet if they don’t tie your blackjack. The chances are stacked against you in this scenario, so there’s no reason to risk those $5.
To be successful at this, you need to be much more skilled at blackjack card counting than just a simple technique; hence, we suggest against it.
For more information, you can visit: https://www.askgamblers.com/gambling-news/blog/blackjack-insurance