Players can effectively utilize insurance bets in blackjack when they have a strong hand and the dealer shows an Ace, as this allows them to protect against the possibility of the dealer having a blackjack. However, insurance bets generally carry a high house edge, making them less favorable in the long run. Players should avoid insurance bets when they are unsure of the dealer's hand or when their own hand is weak, as the potential payout may not justify the risk. It's important for players to understand that while insurance can offer some protection, it often does not provide a statistically sound strategy for maximizing overall returns.