It's unfortunate, but people can be insulting. Sometimes they insult on purpose, at other times it's unconsciously. Learn to insult people back after an insult and be ready the next time an insult is hurled your way. Use wit and cleverness and make people think twice the next time they want to insult you.
Memorize some basic insults from a good joke or humorous resource. Alternately, you can come up with your own insults by commenting on a person's looks, intelligence level or personality. Insults based on truth have the most effective results.
Pay attention and listen to people when they're talking to you. There's nothing worse than being insulted and not knowing about it.
Recognize when you're being insulted. Some people can insult subtly, although most people's insults are blunt. However, it's hard to insult people back when you fail to realize you were being insulted.
Respond immediately when insulted by insulting people back. Use a memorized insult or come up with a new one. Think fast and notice the insulting person's most obvious characteristic or anything out of the norm, which is a good basis for an insult.
Comment to friends on how well you responded to the insult. Walk away from the insulter to show you intend to rise above the fray and stay there.