What is an Insurance bet?
An insurance bet in horse racing is a wager that can return some or all of your stake if certain conditions are met.
For example, you might get a refund if your horse does not finish in a placing position or if the race favourite does not win. Insurance bets are designed to give you a bit of protection compared to normal win or each-way bets.
They are commonly offered by bookmakers in the UK and Europe and may be marketed under different names, such as Cover Bets (Bet365), Insurebet (Paddy Power), or Insurance Betting (William Hill).
How an Insurance bet works
This type of bet is most commonly used on accumulators or multiple selections, but it can also apply to single bets in certain cases.
For example, imagine you place a £10 each-way accumulator on three horses:
- Horse A: 2.50 (+150)
- Horse B: 3.00 (+200)
- Horse C: 4.00 (+300)
If one of your horses fails to place or the favourite in the bet does not win, an insurance bet could return your stake, either fully or partially, depending on the bookmaker’s rules. Without insurance, your entire £10 stake would be lost.
Bookmakers typically offer insurance bets with specific terms, such as:
- Only one losing leg triggers the refund.
- The stake may be refunded as cash or free bets.
- Limits may apply to the maximum refund or qualifying races.
Types of Insurance bets
Bookmakers offer a few different variations of insurance bets, each designed to return your stake if a specific outcome occurs. The exact terms depend on the operator, but the most common types include:
1. Acca Insurance
This applies to accumulator bets. If one selection in your accumulator loses, your stake may be refunded. The refund is usually issued as cash or a free bet, depending on the bookmaker’s rules.
2. Money-back if beaten by the favourite
Your stake is returned if your horse loses the race but finishes behind the starting-price favourite. This version is typically offered on selected meetings or feature races.
Example
- Race: 5-horse event
- Bet: £20 on horse A at 6.00 (+500)
Scenario 1: Favourite wins; horse A finishes second.
- Bet loses, no refund.
Scenario 2: Favourite finishes second; horse A finishes third.
- Stake refunded: £20 returned.
Scenario 3: Horse A wins; favourite finishes anywhere.
- Bet wins: £20 × 6.00 = £120 return
- Profit: £100
3. Place Insurance
A bookmaker may refund your stake if your horse misses a defined placing position. For instance, “money back if your horse finishes second or third”.
Example
- Bet: £20 each-way (£10 win / £10 place)
- Odds: 3.50 (decimal), +250 (American)
Scenario 1: Horse finishes outside the top 2.
- Win stake refunded: £10
- Place stake lost: £10
- Net loss: £0.00 (if the full win stake is refunded) or partial, depending on rules
Scenario 2: Horse finishes first or second.
- Full payout calculated normally: win × stake + place × stake
4. Fallers Insurance
In jump racing, faller insurance returns your stake if your horse falls, is brought down, or refuses. This does not depend on finishing position, only on the incident occurring.
5. Refund if your horse finishes second
A simpler version of place insurance, where your stake is returned if your horse finishes runner-up to the race winner.
Related: What is Place Betting? (+ How it works & helpful tips)
Insurance bet vs. Each-Way bet
Insurance bets and each-way bets both reduce risk, but they work in different ways:
Feature | Insurance bet | Each-Way bet |
|---|---|---|
Purpose | Refunds stake if predefined conditions are met | Pays out if the selection finishes within a place position |
Structure | Single stake on a win outcome | Stake split into two parts: win + place |
Refund | Possible refund (cash or free bet) | No refund; place part can still return funds |
When it triggers | Depends on specific terms | Triggers when the selection finishes in a listed place position |
Returns | Full win return only if the main selection wins | Win return for victory, or reduced return if placed |
Risk level | Reduced due to refund potential | Reduced due to place return potential, but higher total stake |
What to watch for with Insurance offers
Insurance offers are bookmaker promotions, not separate bet types, and each comes with its own terms and conditions.
- Check the Refund Type: Refunds are often issued as free bets or site credit, not cash. With free bets, you usually keep only the profit, not the stake.
- Understand the Trade-Offs: Some offers, like “Acca Edge,” refund a losing leg but may provide slightly lower odds across your bet.
- Read the Rules: Check minimum selections (often 4–5), minimum odds per leg, and maximum refund limits.
Conclusion
Insurance bets offer a valuable safety net for horse racing punters, helping to protect your stake against bad luck. While not a path to guaranteed profit, they are a useful tool for managing risk, provided you always read the specific terms and conditions.
Frequently asked questions (FAQs)
Are insurance bets profitable in the long term?
They are not designed for long-term profit. While they reduce risk by protecting your stake, this safety net comes with slightly lower odds. Most insurance-type bets carry a high house edge, making them a strategic tool for bankroll protection rather than a reliable money-making method.
Are insurance bets available outside the UK and Europe?
While most common in the UK and Europe, these bets are becoming more accessible in other regulated markets like the United States, Canada, and Australia.
Can I combine insurance bets with other promotions?
Yes, some bookmakers allow stacking insurance bets with other offers, such as free bet bonuses or enhanced odds. Always check the terms, as combining promotions may limit eligibility for refunds or cap potential payouts.
How does the refund process work if my bet qualifies?
Refunds are typically issued automatically after the race settles. Depending on the offer, the stake may be returned as cash, free bets, or site credit. Processing times can vary, from instant crediting to up to 24–48 hours.
Are there restrictions on the races that qualify for insurance?
Yes, some offers only apply to selected races, feature meetings, or minimum odds thresholds. Races with reduced fields, virtual racing, or non-runner void rules may be excluded, so it’s essential to check the promotion details before betting.