What is a 2 to 1 Payout in Blackjack?
A 2 to 1 payout refers to the payout received when you make an insurance bet and the dealer has a natural blackjack. For a $5 insurance bet, you would receive $10, for double your original wager. This helps protect you from automatically losing your main bet when the dealer hits blackjack right away.
Insurance payouts are a fundamental but often misunderstood part of blackjack strategy….
The Insurance Bet – Hedging Against Dealer Blackjack
Insurance is an optional side bet offered when the dealer shows an ace as their face up card. By putting up half your original wager, you are essentially betting that the dealer has blackjack. If they do, your insurance bet pays 2-1 to help offset the loss of your original stake.
Some Key Statistics on Insurance Bets
- Probability of dealer blackjack with Ace showing: approx. 31% in single deck, 28% in 4 decks
- House edge on insurance: 7.4%
- Blackjack probability if player has blackjack: 48% single deck
So why do casinos offer insurance if it pays 2-1 when they have a disadvantage? Because players tend to overuse insurance, resulting in a nice profit for the house over time. Still, for perfect basic strategy players, there are some cases where an insurance bet makes mathematical sense….
My Strategy: Novices should avoid insurance except when holding a blackjack. Stay disciplined and only take it when the odds dictate based on proper strategy guides. Just because the dealer has an Ace doesn‘t guarantee they‘ll end up with a blackjack.
Examples of Insurance In Action
Let‘s walk through some insurance examples to showcase how much of an impact it can have, good or bad:
Player Bet: $10 Dealer Upcard: Ace
- Player takes $5 insurance bet
- Dealer has blackjack
- Player loses original $10 bet
- $5 insurance bet pays 2-1, so $10 payout
- Net result: Breaks even for hand
- Dealer does not get blackjack
- Player loses $5 insurance bet
- Play out normal blackjack hand
- Net result: -$5 insurance cost
So insurance helps mitigate losses against dealer blackjack, but burning that extra $5 still hurts when the dealer misses. This is why basic strategy is crucial – to minimize wasted insurance bets and leverage them only when the odds call for it. An extra advantage against the house is always welcome!
How Insurance Works in Popular Blackjack Variants
While a standard 2-1 payout is common, some blackjack variants change up the insurance rules:
Spanish 21 – No insurance offered. Good for players as it removes decision complexity.
Free Bet Blackjack – Instead of insurance, players get to play a free double down side bet whenever dealer shows an Ace. Interesting twist that ratchets up the action.
Double Attack Blackjack – Player gets to see dealer‘s down card and make an extra "double attack" bet before deciding on insurance. Love the extra information edge!
Blackjack Switch – Unique game where players play two hands and can switch their second cards. Insurance works normally and is a key defensive shield to have.
The absence or modification of insurance in blackjack switch-ups can swing the odds noticeably. It‘s vital to understand how each variant handles insurance before diving in.
The Impact of the "No Blackjack" House Rule
Many casinos nowadays have shifted to paying out blackjacks at 6:5 odds instead of the traditional 3:2. This drops your payout from $15 to $12 on a $10 bet.
On top of that outrage, some 6:5 tables institute a "No Blackjack" rule, meaning the dealer does NOT check for blackjack when showing an Ace. This forces players to lose their entire bet to dealer blackjack instead of having the insurance safety net.
My Take: These carny rules trash decades of fair blackjack convention and are expressly designed to pad profits for the casino. Players lose all ability to protect themselves against dealer blackjack, rendering basic strategy useless. My advice is to strictly avoid these 6:5 "No Blackjack" tables no matter what. Seek out 3:2 blackjack pay tables instead to regain the upper hand.
Final Thoughts on Insurance in Blackjack
Insurance functions as an elective hedge that pays 2-1 when the dealer shows an Ace and actually hits blackjack. Mastering insurance plays intertwines optimal basic strategy with an added opportunity for risk mitigation. While not always correct by the numbers, I personally leverage insurance more aggressively than most. It provides short term variance reduction and I have the bankroll to take advantage of swings in luck.
For recreational players, overly relying on insurance hunches is financially dangerous. But completely ignoring insurance misses out on spots where it legitimately saves you coins. Learn the right plays around insurance based on your style, limits, and personal risk tolerance. Keep a level head, trust the math, and only take insurance when it actually gives you the edge!
