What is insurance in blackjack?
Insurance is a side bet available when the dealer shows an ace as their upcard. It pays 2:1 if the dealer has a blackjack. You can bet up to half your original wager on insurance.
Why insurance is usually a bad bet
Insurance loses money in the long run for most players. For insurance to break even, the dealer would need a 10-value card in the hole one in every three times (roughly 33% of the time). In reality, ten-value cards make up about 30.8% of a standard deck. That gap means insurance has a house edge of around 5.9% in a standard 8-deck game.
Even money
‘Even money’ is what dealers offer when you have a natural blackjack and the dealer shows an ace. Taking even money means you accept a guaranteed 1:1 payout rather than risking a push if the dealer also has blackjack. This is mathematically the same as taking insurance on a blackjack hand. Basic strategy says to decline both insurance and even money in virtually all standard blackjack games — the long-run cost is not worth the short-term certainty.