Blackjack insurance and surrender are two side bets that allow online players to manage their losses when the odds are not in their favor. Both options give you a chance to cut your losses when you’re facing a likely losing hand. However, they are very different in terms of how and when they should be used. While insurance is typically considered a poor strategic choice, surrender can be a smart way to prolong your bankroll when used correctly.
In this guide, we’ll break down what blackjack insurance and surrender are, how they work, and when it makes sense to use them. We’ll also highlight the key differences between the two and the rules that vary from one online casino to another.
What is Blackjack Insurance?
Blackjack insurance is a side bet that is offered to the player when the dealer's upturned card is an Ace. The insurance bet is to wager on the dealer's second card having the value of 10, giving the dealer blackjack. If the dealer does have blackjack, the insurance bet will win, with a payout of 2:1. If the dealer does not have blackjack, the player's insurance side bet will lose.
How Does Blackjack Insurance Work?
When the dealer shows an ace, you can bet up to 50% of your original wager as insurance. If the dealer's hidden card is worth 10, the insurance bet pays 2:1. If the dealer doesn't have blackjack, the insurance bet is lost, and the hand continues as usual.
When Should You Use Blackjack Insurance?
Insurance must not be used in order to minimize the house edge. When a player takes insurance, the odds of winning are not in their favor.
The chances of the dealer having blackjack are 9:4 against, meaning there are 9 possible outcomes where the dealer does not have blackjack and only 4 outcomes where they do. However, the insurance bet only pays 2:1, which doesn't balance the risk.
The insurance profit/loss is still a side bet. Don't forget about the original bet.
This chart illustrates the odds and potential outcomes of taking insurance, showing the house edge clearly.
| Scenario | Player Bet | Insurance Bet | Dealer’s Hand | Payout |
|---|---|---|---|---|
| Dealer has blackjack | $50 | $25 | Ace + 10 (Blackjack) | Break-even (loss of $50 on original bet, win of $50 on insurance bet) |
| Dealer does not have blackjack | $50 | $25 | Any hand other than blackjack | $75 loss (loss of $50 on original bet, loss of $25 on insurance) |
What Are the Odds of Winning Insurance Bets?
Insurance bets only win around 30% of the time, which means the house wins 70% of the time. This gives the casino a significant 20% advantage, known as the "house edge."
This high house edge makes insurance bets unprofitable for most players, and is recommended to be avoided when following basic blackjack strategy.
This is why insurance bets are unprofitable for most players—the house edge ensures that, over time, the casino makes more money from these bets than players do.
What is Blackjack Surrender?
Blackjack surrender is a strategy that lets you give up your hand and lose the game, and in return you get half of your original bet back. Blackjack surrender is a useful tool for players who believe they are likely to lose the hand, as it limits the loss to 50% of the original bet.
How Does Blackjack Surrender Work?
Surrendering in blackjack works by giving you the opportunity to give up your current hand and immediately lose half of your bet. For example, if you bet $20 and you are dealt a terrible hand and the dealer has a 10, you can surrender your hand and have $10 returned to you.
This is useful when your chances of winning are low, such as having a hard 16 when the dealer has a 10. By using the option to surrender you minimize your losses rather than risking the full amount.
When Should You Use Blackjack Surrender?
You must use the surrender option when the dealer has a strong card like a 9, 10 or Ace and you have a weaker hand like a 16. In this situation, you can hit and risk busting, or stand and risk getting beat by the dealer.
This table summarizes when to surrender in different situations, based on basic blackjack strategy.
| Player’s Hand | Dealer’s Up Card | Surrender? |
|---|---|---|
| Hard 16 (no pair) | 9, 10, Ace | Yes |
| Hard 15 (no pair) | 10 | Yes |
| Hard 17 or higher | Any | No |
| Soft hands (e.g., A-6, A-7) | Any | No |
What’s the Difference Between Early and Late Surrender?
The difference between early and late surrender is when you can give up your hand. Early surrender allows you to give up your hand before the dealer checks their cards for blackjack, which reduces the house edge significantly. Late surrender means they can check their hand for blackjack before you have the option to surrender. If the dealer does have blackjack, you cannot surrender and lose your full bet. If they do not have blackjack, late surrender becomes an option and you will only lose half of your bet.
When is Early Surrender Better Than Late Surrender?
Early surrender is always the better option as you can surrender before the dealer checks for blackjack, ensuring you only lose half of your entire bet. If the dealer is showing an Ace or 10, early surrender reduces the house edge by about 0.62%. It's very useful when your hand is a hard 12 through to a hard 17 against a strong dealer's upturned card.
Early Surrender
| Pros | Cons |
|---|---|
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Late Surrender
| Pros | Cons |
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FAQs on Blackjack Insurance and Surrender
The optimal strategy to use the surrender option or take the insurance side bet can vary depending on the online casino's blackjack table rules, the blackjack variant, and the dealer's upturned card in play.
How Do Rules for Insurance and Surrender Vary Across Online Casinos?
Many casinos do not give you the option to surrender or take the insurance bet. Insurance is usually available more often, but the option to surrender early is quite limited as casinos prefer to keep the house edge more in their favor.
Are There Blackjack Variants Without Surrender or Insurance?
European blackjack exclude the surrender option entirely. Insurance is usually offered as a side bet. When playing online, it is advised to check the casino site's blackjack rules. Knowing the rules of the table is important to keep the house edge in your favor and beat the house.
Can Card Counting Influence the Use of Insurance or Surrender in Online Blackjack?
Card counting can influence the use of insurance or surrender, as the card counter can estimate the likelihood of high value cards remaining in the deck. If many high value cards are left, taking insurance theoretically becomes more valuable because the chances of the dealer having blackjack increase. However, players who are advanced enough to card count would not be taking the insurance side bet, as they are knowledgeable enough to know that it is not profitable in the long run.
In online blackjack, most casino sites use continuous shuffling machines or re-shuffle the deck regularly to limit the ability of players to card count accurately. This makes card counting a redundant strategy when deciding whether to take insurance or surrender.
Should the Size of My Bankroll Affect Whether I Use Surrender or Insurance?
The option to surrender or take insurance must not be influenced by the size of your bankroll. If the odds favor the surrender option, it should be taken to limit the loss of the original bet. You need to ensure your bet sizes are proportionate to your bankroll and that you are not betting too much and relying on insurance or surrender to prevent you from losing all your funds. Read more about what bet sizes are optimal for your bankroll and use our blackjack bankroll calculator.
Are Surrender and Insurance Like Betting Against Yourself?
Surrender and insurance are effectively taking bets on you losing the hand. To surrender the hand is to take a half loss incase you have a losing hand. Taking an insurance bet is to bet on the dealer having blackjack to cover you incase of an instant loss. Both bets are betting on the dealer beating you in the hand. However these two options are defensive bets designed to minimize your losses.
Surrender can be a smart play, but insurance side bets are a losing play over time, as they increase the house edge and make the casino more likely to profit in the long run.
How Much Does Blackjack Insurance Cost?
Blackjack insurance costs 50% of your original bet.
What is the Proper Hand Signal for Surrender in Blackjack?
In physical blackjack games, to signal surrender, you place your middle finger on the table, rest your pointer finger on top, and slide it across the table horizontally. This tells the dealer you wish to surrender and forfeit half of your bet.
How Does Bankroll Management Affect the Use of Insurance and Surrender in Online Blackjack?
Good bankroll management ensures you make intelligent decisions based on the odds and statistics, not emotional responses to what is on the table or has recently been played. Insurance is a poor, losing bet due to the unfavorable odds that it offers. Playing disciplined blackjack with smart bankroll management is to avoid insurance. Surrendering, however, can be logical when the odds are against you. Surrendering can limit the loss and preserve bankroll funds for another day.
When Should You Avoid Insurance or Surrender in Online Blackjack?
Insurance should always be avoided as it increases the house edge, meaning you will lose more money over time playing blackjack. Surrender must be avoided when you have a high chance of winning the hand, such as when the dealer has a weak hand like a 5 or a 6. Stick to basic blackjack strategy to remain in the game as long as possible, and use a strategy card or cheatsheet to help you make quicker decisions.
