Abstract: A tool holder slides over a tool protecting it from water and other rust inducing conditions. The tool holder comprises a cover having an internal cavity that holds two retainer sections of polyethylene. The retainer sections are sized to conform with the exterior profile of the tool and press firmly against opposite exterior surfaces of the tool as it is being inserted inside the tool holder. The retainer sections hold the tool snugly inside the cover cavity providing a highly effective insulation barrier. A lubricant is insertable inside the cover cavity and absorbed by the retainer sections and is automatically applied to the exterior surface of the tool as it is being inserted into the tool holder. The inside face of each retainer section have an abrasive surface that automatically scrubs the exterior surface of the tool while it is being inserted and removed from the holder.