Due to heat transfer of liquid steel, ambient temperature of induction coil in the electromagnetic induction controlled automated steel-teeming (EICAST) system is extremely high, which causes the coil damage and seriously restricts development of the EICAST technology. To solve the problem, a numerical simulation method was used to study the heat insulation effect of using different kinds, different thicknesses and different positions of heat insulation materials on induction coil. Finally, the optimum heat insulation method of induction coil was obtained and validated by experiments. The results show that after 10 mm heat insulation coating or 5 mm insulation coating +5 mm insulation felt was arranged on the outside of induction coil, the ambient temperature of the coil could be reduced to 614 °C and 589 °C, respectively. The two methods above can get the ideal heat insulation effect and meet the life requirements of induction coil for the EICAST technology.