Should you take insurance in blackjack?
When the dealer shows an Ace, you will be asked if you want insurance. It sounds protective and sensible, but it is really just a separate bet with a built-in house edge, and basic strategy says to decline it every single time.
What insurance actually is
Insurance is a side bet, up to half your original wager, that the dealer's hole card is a 10-value card completing a blackjack. If the dealer has it, insurance pays 2 to 1, roughly canceling your main-bet loss. If not, you lose the insurance and play on. It has nothing to do with your own hand.
Why the math says no
For the bet to break even, the dealer would need a ten under the Ace about one time in three. In a full deck the true rate is closer to 30.8%, so insurance carries a house edge of roughly 7% - far worse than the base game. Skipping it is standard basic strategy.
The even money version
When you have a blackjack and the dealer shows an Ace, you may be offered 'even money,' which is just insurance by another name. Taking it guarantees a smaller sure win but costs you value in the long run. Only card counters tracking a ten-rich deck should ever take insurance.
Related questions
What is even money in blackjack?
Even money is an offer made only when you have a natural blackjack and the dealer shows an Ace. Instead of risking a push if the dealer also has blackjack, you take a guaranteed 1-to-1 payout right away. It sounds safe, but it is mathematically the same as taking insurance and costs you value in the long run.
How does card counting work in blackjack?
Card counting keeps a running tally of the cards already played to estimate whether the remaining deck is rich in high cards or low cards. High cards (tens and Aces) favor the player, so a counter bets more when the count is high and less when it is low. It is legal skill, not cheating, but it does not work against online shuffling.
What is basic strategy in blackjack?
Basic strategy is the mathematically proven best decision for every possible hand you can hold against every card the dealer can show. It was worked out with computer simulations and is usually shown as a color-coded chart. Following it perfectly reduces the house edge to about 0.5%, without any card counting required.