Insurance & Side Bets in Blackjack — Are They Worth It?
A detailed look at insurance, even money, and popular blackjack side bets. Find out the true house edge on each.
Insurance
How Insurance Works
When the dealer’s face-up card is an Ace, you’re offered insurance before the dealer checks the hole card:
- You may place an insurance bet of up to half your original wager
- The insurance bet pays 2:1 if the dealer has blackjack (a 10-value hole card)
- If the dealer doesn’t have blackjack, you lose the insurance bet
- Your main hand then plays out normally
The Math Against Insurance
In a standard 6-deck shoe:
- There are 96 ten-value cards (10, J, Q, K × 4 suits × 6 decks)
- There are 216 non-ten cards
- Probability the dealer has blackjack: 96/311 ≈ 30.9%
- Insurance pays 2:1, so break-even requires 33.3% probability
Since 30.9% < 33.3%, insurance is a losing bet by approximately 7.7% house edge.
Even Money
When you have a natural blackjack and the dealer shows an Ace, the dealer offers “even money” — a guaranteed 1:1 payout on your bet:
| Choice | Dealer Has BJ | Dealer Doesn’t |
|---|---|---|
| Take even money | Win 1:1 | Win 1:1 |
| Decline even money | Push (0) | Win 3:2 |
Mathematically, declining even money earns more over time:
- Taking even money: always win 1 unit
- Declining: (30.9% × 0) + (69.1% × 1.5) = 1.037 units average
Always decline even money — it’s the same trap as insurance.
Common Side Bets
Side bets are additional wagers independent of the main game. They’re placed before cards are dealt and resolved based on your first cards, the dealer’s up-card, or combinations.
21+3
What it is: Your two cards plus the dealer’s up-card form a 3-card poker hand.
| Hand | Typical Payout | Probability |
|---|---|---|
| Suited Three of a Kind | 100:1 | 0.02% |
| Straight Flush | 40:1 | 0.22% |
| Three of a Kind | 30:1 | 0.46% |
| Straight | 10:1 | 3.26% |
| Flush | 5:1 | 5.04% |
House edge: Approximately 3.2-8.8% depending on the pay table.
Perfect Pairs
What it is: A bet that your two cards will form a pair.
| Pair Type | Typical Payout | Probability |
|---|---|---|
| Perfect Pair (same suit) | 25:1 | 1.66% |
| Colored Pair (same color) | 12:1 | 3.32% |
| Mixed Pair (different color) | 6:1 | 6.64% |
House edge: Approximately 4-8% depending on the pay table.
Lucky Ladies
What it is: A bet that your two cards total 20.
House edge: Approximately 17-24% — one of the worst side bets.
Royal Match
What it is: A bet that your first two cards are suited.
House edge: Approximately 3.7-6.7%.
Why Side Bets Are Bad Value
| Bet | Approximate House Edge |
|---|---|
| Main blackjack game (basic strategy) | 0.5% |
| Insurance | 7.7% |
| 21+3 | 3-9% |
| Perfect Pairs | 4-8% |
| Lucky Ladies | 17-24% |
| Royal Match | 4-7% |
The main game has a house edge 6-48 times smaller than side bets. Every dollar you put on side bets costs you significantly more than a dollar on the main game.
The Bottom Line
- Insurance: Always decline. The house edge is 7.7%
- Even Money: Always decline. You earn more over time without it
- Side Bets: Fun for entertainment, terrible for your bankroll. If you play them, understand you’re paying a premium for excitement
Play Smart
Skip the side bets and focus on sound strategy.
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