Why young drivers could cut car insurance costs by choosing a classic model

As the cost of owning a car continues to rise, more younger motorists are looking beyond newer models and turning to older vehicles with character, where the potential savings can be substantial.

Classic Volkswagen Beetles and campervans are among the models winning over a new generation of drivers, with specialist cover sometimes costing around half as much as insurance for a modern equivalent.

Just Kampers, which offers specialist insurance for younger owners of air-cooled vehicles, says its customer base has grown by more than 200% over the past two years.

Distinctive styling and a healthy dose of nostalgia are clearly part of the attraction, but the company believes lower running and insurance costs are also helping classic Volkswagens find a younger audience.

A driver in their early 20s, for example, may be able to insure a classic Volkswagen for considerably less than a newer and more conventional hatchback.

In one case study, a 23-year-old man in the GU9 postcode area who had held his licence for three years was quoted £463 to insure a 1967 Volkswagen Beetle. Cover for a 2019 Volkswagen Polo would instead have cost £704.

The newer car would also have come with a higher excess and would be more likely to lose value during ownership, while the classic Beetle qualified for historic vehicle tax and MOT exemptions.

The classic Volkswagen Beetle, with its instantly recognisable shape and enduring appeal, has recorded the fastest growth among Just Kampers customers.

It is not the only older vehicle attracting younger buyers. Classic campervans, self-build campers and motorhomes are also becoming increasingly popular with drivers under 30.

The appeal goes beyond saving money. Older cars stand out in photographs and videos, while growing numbers of meets and shows give owners the chance to socialise with other enthusiasts and share advice.

Simpler mechanical construction can be another advantage. Many older vehicles have fewer electronic systems, sensors and control modules, giving hands-on owners a better chance of completing routine maintenance and straightforward repairs themselves.

Reliability can still be unpredictable, of course, but there is also an environmental argument for keeping an existing classic on the road instead of regularly replacing cars with newer models.

Some owners may also benefit from clean-air zone exemptions. Vehicles registered in the historic tax class are exempt from London’s Ultra Low Emission Zone charge, while historic vehicles are also covered by exemptions recognised by Bristol’s Clean Air Zone.

For younger motorists prepared to accept the quirks, maintenance and occasional inconvenience of classic ownership, the combination of personality, simpler engineering and potentially cheaper specialist insurance could make an older Volkswagen a compelling alternative to a modern supermini.

To explore the cover available and see how much could be saved, visit the Just Kampers website.