What is Parlay Insurance in Sports Betting?

If you’ve even remotely familiar with video games, then you’re probably familiar with the concept of health powerups that endow your character with extra lives, or revive them if their health is dangerously close to death. 

Likewise, if you’ve ever played the game of life (which is a given if you’re alive and able to read this), then you’re probably familiar with the concept of insurance, which offers similar saving throws and second chances when the worst-case scenarios afflict your quality of life.

Well, just as is the case with both of those games, you can also find saving throws and second chances in certain casino games, online or offline. One example of such a second chance lifeline is parlay insurance, which saves one losing leg in your game. If you’re familiar with parlay or teaser bets, then you know that one leg could literally spell the difference between winning and losing, or life and death for your winnings.

How does this parlay insurance system work, and how can you reap the most benefits out of it? Keep reading this comprehensive, in-depth parlay insurance betting guide to find out. If you're wondering - What is a Parlay Bet? - Stick around, we'll answer that too!

Parlay insurance offers a partial monetary refund for bettors who wound up losing a leg of their parlay, usually up to $25 most of the time. Now, that might not sound like a lot, but it’s certainly better than losing your cash altogether. Parlays are one of the highest-risk bets you can make in a sportsbook, as they require everything to coalesce and go right for you to beat the odds and win.

With the distinct exception of bets leading to pushes, even one slip-up could lead to you losing your entire parlay bet. Fortunately, parlay insurance will cover one of those slip-ups, provided it’s just one. Most popular online sportsbook providers are known for offering parlay insurance promotions in some form, including popular iGaming brands like Caesars Sportsbook, WynnBet, and SI Sportsbook.

Generally, most of these sportsbooks offer two types of parlay insurance promotions; cash-back insurance, and free-bet insurance. The former will reimburse your original bet money if all but one of your parlay legs win, whereas the latter will allow you to place a second bet equivalent to what you initially wagered on the original parlay bet.

From a business standpoint, this allows the house to provide a win-win deal; you don’t totally lose the winnings you originally spent on your bet, and the house successfully incentivizes you (as a bettor) to keep trying and wagering. Alternatively, the house may offer same game parlay insurance, which (as we’ve described previously) allows bettors to save up to $25 on a single leg lost.

Most sportsbooks offer these insurance promotions exclusively for larger, higher risk parlay bets, usually comprising five legs or more wagered on any sport. 

However, PointsBet offers free-bet parlay insurance that refunds three-leg parlay bets, provided that:

You opted into the promotion beforehand

All three legs are wagered on a single NFL game

The total parlay amounted to $100 or more

Only one leg of the parlay failed

All in all, parlay insurance promotions are an easy incentive offered by the house, an incentive that encourages bettors to raise the stakes, up the ante, and make riskier wagers than they would otherwise. 

With over 12 million users worldwide as of writing this, FanDuel is undoubtedly one of the most popular online sportsbook brands in the global iGaming market. According to GamblingCompliance data analyst Daniel Stone, FanDuel Sportsbook alone currently accounts for approximately half of the sports betting industry’s national market share. 

With such a powerful influence on the national market, you might be contemplating placing a parlay on FanDuel, and consequently wondering how their parlay insurance system works. FanDuel has two types of parlay insurance promotions, and here’s how each breaks down:

Allows players to create a 5+ leg parlay out of wagers made on any sport

Provides a $25 max refund for single legs lost on an eligible wager

Covers 4-eligible parlay wagers each day per eligible sportsbook account

Each individual parlay leg must have odds greater than or equal to -200

Refunds issued within three days after placing the parlay bet

Round robin, teaser, and same game wagers not eligible 

Covers +3 leg same game parlay wagers placed on any sport

The total same game parlay value must equal +200 or greater

Participants are able to place multiple same game parlays if they want

Maximum $25 refund issued on failed parlay leg as site credit

Live bets, round robins, and odds boosts are ineligible

Refunds issued within three days, just like multi-sport insurance

Pre-packaged same game parlay bets are not covered

These are how FanDuel’s two main parlay insurance promotions break down. If you’re still uncertain about these promotions break down, we strongly encourage you to contact FanDuel’s customer service line at 646-930-0860.

As long as you’re comfortable with what you’re wagering, then yes, it would be wise to pair your parlay bet with a parlay insurance promotion. Even though they offer potentially higher rewards, parlay bets are also considerably higher risk than single-wager bets, especially the sorts of 4-5+ leg parlay bets that are usually covered by these insurance promotions.

When placing wagers that precarious and high risk, it helps to have a good saving throw, safety net, or second chance hidden under your sleeve. Parlay insurance promotions can offer you that essential second chance, and we highly encourage you to take those chances if you have them.

Once you’re comfortable placing parlays, it’s time to pick your preferred online sportsbook platform. There are plenty of great iGaming sports betting services on the market, services like: