A method of applying an outer insulation to a stator bar to form an insulated stator bar. The method entails extruding at least one extruded member that will form the outer insulation. The extruded member has an opposing pair of edges that are parallel to the longitudinal length of the extruded member. The extrusion process creates an inner cavity that extends the longitudinal length of the extruded member. A bare stator bar is then inserted into the inner cavity of the outer insulation so that the outer insulation surrounds the perimeter of the bar and extends along a longitudinal length thereof. The edges of the extruded member are then attached together so that the perimeter of the bar is entirely enclosed by the extruded member.