[Term3]

The only thing you should be insulating is the exhaust side of the engine, preferably ceramic coated as it holds in the heat best. Insulating on the intake side, and that includes the intercooler piping, should not be insulated. That's why aluminum is used, it dissipates heat faster then steel. The warmer the air going into the engine the less dense it is a thus the less horsepower it will make.

 

[Term3]

Also, the only time the intercooler piping is going to heat up is when the turbo is producing boost, the higher the boost the hotter the air. If you installed temperature gauges in the piping going to and from the intercooler you would be surprised how hot twenty or twenty five pounds of boosted air is!

 

[Term3]

So, will insulating the exhaust make more horsepower? Yes. Will you feel it? I really don't think so. Do it to help keep under hood temperatures lower so the electronics live longer.

 

[Term3]

Me too.