Insurance and Side Bets in Blackjack

Insurance Explained

Insurance is an optional bet offered when the dealer shows an Ace. The bet costs half of the main stake and pays 2:1 if the dealer completes a blackjack. Although it may appear to limit losses, long-term results show that insurance produces weaker expected outcomes than standard play unless the player counts cards at a high level.

From a statistical view, the dealer needs a ten-value card underneath the Ace for the bet to return profit. Across standard decks, the frequency of ten-value cards is not high enough to justify regular use of insurance. This converts the option into a short-term risk hedge rather than a strong strategic decision.

Why Insurance Is Commonly Avoided

• House edge increases significantly when insurance is taken often.
• Insurance is separate from the main hand and does not improve the chance of winning it.
• Regular players experience reduced long-term results if the option is used frequently.

Overview of Side Bets

Side bets in blackjack run independently from the standard hand. These options introduce higher volatility and higher payouts, which attract recreational interest. At the same time, side bets usually carry a lower return-to-player percentage than the main game.

Common Side Bets

• Perfect Pairs: Pays if the player's first two cards form a pair. Returns vary based on pair type: mixed, coloured, or perfect.
• 21+3: Combines the player’s first two cards with the dealer’s upcard to form poker-style outcomes such as flush, straight, three of a kind, or straight flush.
• Lucky Lucky: Pays based on the total value of the player's two cards plus the dealer’s upcard, with strong payouts for totals such as 19, 20, or 21.
• Bust It: Pays when the dealer busts after drawing more cards.

RTP and Risk Profile

Side bets offer high payout brackets but lower RTP compared to the main blackjack game, which usually sits near 99% with a solid strategy. Many side bets fall in the 92–97% range, which shifts results toward higher variance. They deliver entertainment value but do not contribute to consistent performance over repeated sessions.

Best Practices for Using Side Bets

• Use side bets sparingly if the aim is long-term stability.
• Avoid combining multiple side bets in the same round unless playing purely for high variance excitement.
• Track table rules since payout structures differ across casinos.