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I have been told that the wrap will cause them to rust out prematurely. I have seen notes in the boxes from several header manufacturers stating that all warrantees are void if header wrap is used. Of couse, Smokey Yunick said "The hotter you can keep the headers, the less back pressure you will have." (Better scavenging of the combustion chamber.)
Yes, but Smokey was not concerned about the longevity of some headers versus extracting the max hp outta some headers, even if they lived a lot shorter time. I had wrap on a motorcycle and it seemed like it did wear them out fairly quicker.
 

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I've read that it also fatigues the mild steel metal. It should be alright on coated headers, since the headers wont get moisture, i think
 
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