I don't know the difference because they have the same meaning.
closed as off-topic by Misti, 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."
Use the verb insulate- when you wish to impy "protection from heat, cold, or noise," by surrounding with (insulating) material
When you remove or set apart one thing from others, you isolate it. You could isolate yourself from people by living in a remote countryside.