I don't know the difference because they have the same meaning.
closed as off-topic by Mysti, Nicole, FumbleFingers, Mitch, Ellie Kesselman Mar 13 '15 at 20:06
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Insulated has the meaning of protected, while isolated has the meaning of separated.
"If I "isolate" someone I might put them in a room, shut the door, not allow people to see them, prevent them from looking out.
If I "isolate" something I am segregating or separating it from the rest because of some problem it might have. Its being kept apart.
If I "insulate" something I might put some material around it to keep the warmth in, or the cold out. I am protecting it.
A person can also be "insulated"... if you protect them from the world, keep them from hearing bad news."