Table of Content 7
In short
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2:1
Insurance pays 2:1 and costs half your main bet.
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30.8%
Chance of a ten in the hole on an 8-deck shoe, below the 33.3% needed to break even.
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7.47%
Expected loss on every insurance bet at 8 decks; 7.40% at 6 decks.
What blackjack insurance is
When the dealer's face-up card is an ace, live blackjack tables offer insurance before the dealer checks for blackjack. You stake up to half your main bet. If the hole card is a ten, jack, queen or king, insurance pays 2:1 and your main bet loses (unless you also have blackjack). If not, insurance loses and the hand plays on.
Example. You bet $10 and take $5 insurance. If the dealer has blackjack, you lose $10 and win $10 on insurance: you break even. If the dealer has no blackjack, you lose the $5 and play your hand as normal.
Why insurance loses money
Insurance pays 2:1, so it only breaks even if the hole card is a ten one time in three. An 8-deck shoe has 128 ten-value cards among the 415 cards left after the dealer's ace, which is 30.84%. Pay 2:1 on a 30.84% chance and you lose 7.47% of every insurance bet on average.
What insurance costs by shoe size
Insurance costs about 15 times more per dollar than the main game. The main game with basic strategy runs at about 0.5% house edge.
| Decks | Chance of a ten in the hole | House edge on insurance | Cost of a $5 insurance bet |
|---|---|---|---|
| 1 | 31.37% | 5.88% | $0.29 |
| 6 | 30.87% | 7.40% | $0.37 |
| 8 | 30.84% | 7.47% | $0.37 |
Computed from the share of ten-value cards left after the dealer's ace, ignoring the player's own cards.
Even money is insurance under another name
If you have blackjack and the dealer shows an ace, some tables offer even money: a guaranteed 1:1 instead of 3:2. That is the same as taking insurance on your blackjack. Declining it wins 3:2 most of the time and pushes when the dealer also has blackjack, which is worth more on average than taking 1:1.
When insurance makes sense
Insurance only becomes a good bet when more than a third of the remaining cards are tens. Card counters track that, which is the one case where taking it is correct. In live blackjack the shoe is reshuffled long before such counts are reliable, so for everyone else the rule is simple: decline insurance every time. Our guide to card counting in live blackjack explains why counting rarely pays online.
Questions and answers
What is Insurance in Online Live Blackjack?
Insurance in online live blackjack is a side bet offered when the dealer's upcard is an Ace. It's a wager that the dealer has a blackjack, with a payout of 2:1 if the dealer does indeed have a blackjack.
When Should You Choose Insurance in Live Blackjack?
Almost never. Insurance has a house edge of about 7.5% on 6- and 8-deck tables. It only becomes worth taking if more than a third of the remaining cards are tens, which only a card counter could know.
How Much Does Insurance Cost in Live Blackjack?
Insurance in live blackjack typically costs half of your original bet. If you bet $10 initially, the insurance bet would cost $5.
Can You Win Both Your Initial Bet and Insurance Bet in Live Blackjack?
Yes, if the dealer has blackjack and you have blackjack too: your hand pushes and insurance pays 2:1. In every other dealer-blackjack case, insurance offsets the loss on your main bet.
Is Insurance a Profitable Bet in Live Blackjack?
No. Insurance wins about 31% of the time and pays 2:1, so it loses about 7.5% of what you stake on it over time.
