Blackjack and Insurance—How Does it Work Again?

I am going to call the basic rules and plays of blackjack Blackjack 101. This includes the objective, hitting and standing. Double downs and splitting pairs goes into Blackjack 102. Then there is the leap into Blackjack 103, better known as ‘first discovering basic strategy.’

But once a new player gets Blackjack 103 under their belts they begin to move into the murkier waters. Bring on Blackjack 104: Casino Tricks and Insurance.

When a novice blackjack player first encounters insurance they are usually a bit confused. Here they are trying to bet the house and the house is offering them a way to save their bet in case the dealer has a natural blackjack. Is that not oh so considerate of them?

But even then the little warning bells go off in the player’s mind: Why is the house trying to help me when they want me to lose?

The truth is quite simple. The house is helping you. They are helping you to turn your money over to them faster.

And really that is all it is. Think first about what insurance is. The dealer has an Ace showing, the less common of the two cards necessary for a natural blackjack. He then offers you insurance just in case he does have a natural blackjack, which means that hole card needs to be a 10. In all reality you are placing a side wager on whether that hole card is a 10 or not.

Insurance is a side bet made for half the amount of your original wager. If you have bet $10 on the round, insurance would be $5 for you. You are wagering more money on a round than is ordinary.

So rather than standing to lose $10 in a round, you could lose $15. And it is possible to lose both bets. Let’s say that you have a hard 19 and the dealer has an Ace. You take insurance and the hole card is a 9, giving the dealer a soft 20 that he can stand on. His 20 beats your 19, and since the hole card was not a 10, you lose the insurance bet too.

What novice blackjack players have to understand is that insurance does not offer them any true benefits, and that it is best not to take insurance when playing blackjack.