If you have a blanket, I'd use it. If not, I wouldn't buy one, but make something work.
As far as insulating your pipes, as long as it's warm out now, I'd be working on it for sure, otherwise you might just end up down there in the freezing temps replacing them.
You might also consider moving the whole setup, if you have the time/skills/money into a warmer part of the house?
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