To insulate I use 1/2" foam board. An 8'x4' sheet was something like $15 at Lowe's. I just cut it to size with a sharp knife and then tape it to the outside of the cage. They have other stuff to insulate with also if you want to see other options. Like Bogertophis was saying, there's lots of things you can use. Just find something you can attach to the cage that doesn't take too much work.
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