Insurance in blackjack is a side bet offered to players when the dealer's upcard is an Ace. Here's a breakdown:
The Basics: When the dealer shows an Ace, you can take "insurance" before the dealer checks for blackjack. It essentially acts as a bet that the dealer does have blackjack (a ten-value card to complete the Ace).
Cost and Payout: The insurance bet costs half of your original wager. If the dealer does have blackjack, you win your insurance bet, which pays out at 2:1. If the dealer doesn't have blackjack, you lose your insurance bet.
Why it's Offered: Casinos offer insurance because, statistically, it favors the house.
Mathematical Implication: It's generally considered a bad bet in the long run, because the odds of the dealer having a ten-value card are less than 1 in 3. The odds of the dealer not having a ten-value card are higher, making it a losing proposition for the player.
When Might You Consider it? Some players might consider insurance when they have a strong hand (like a 20) and are trying to protect their winnings, or when they are card counting and believe the deck is rich in ten-value cards. However, even in those situations, the advantage is usually minimal.
Here's some more detail on key aspects:
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