Why under-25s are swapping modern cars for a £5,000 classic - and saving money

Young drivers faced with painful insurance bills may be finding an unexpected escape route in a car built decades before they were born.

Specialist insurance company Just Kampers says it has recorded growth of more than 200% in the number of under-25s buying and insuring classic cars, modern classics and campers over the past two years.

And, the firm says, one particular model is leading the charge. It is not a rare supercar or an expensive collector’s item, either. The biggest increase among its younger customers has involved air-cooled Volkswagen Beetles, particularly cars built before German production ended in 1980.

According to the Just Kampers, a usable classic Beetle can cost between £5,000 and £10,000. That could put one within reach of younger motorists who might otherwise be looking at an ordinary used hatchback - but the purchase price is only part of the appeal.

One recent customer, a 23-year-old man living in the GU9 postcode area, with three years of driving experience, wanted a policy that included social, domestic and pleasure use, commuting to one workplace and annual mileage of 10,000 miles. Fully comprehensive cover for a 1967 VW Beetle valued at £7,500 was quoted at £463 through Just Kampers Insurance, with a £250 excess. Mainstream comparison sites did not return a quote for the classic car.

Using the same driver details for a 2019 Volkswagen Polo produced a best comparison-site quote of £704, with a much higher £525 excess.

Cost is not the only factor in the increase in demand for older cars among young people. Feedback gathered at shows and events suggests younger owners are also attracted by the personality and social-media appeal of older vehicles. For drivers who believe many modern cars have all the character of a household fridge, an old Beetle or camper offers an obvious way to stand out.

There is also growing enthusiasm for repairing, maintaining and reusing an existing vehicle instead of replacing it with something newly manufactured. Older cars can often be worked on with more conventional tools, without the diagnostic equipment and specialist electronics associated with many modern models.

Owners have told Just Kampers that learning to complete practical maintenance can save money while delivering a genuine sense of achievement. Qualifying historic vehicles may also receive benefits under certain clean-air-zone rules, although drivers should always check the requirements applying to their car and destination.

Classic ownership still brings compromises. Older vehicles may require more frequent attention, sourcing parts can take time and they will not provide all the safety, refinement or convenience of a modern hatchback.

But the combination of distinctive styling, relatively accessible purchase prices and the possibility of lower specialist insurance is clearly resonating with a new generation.

To find out more about classic car policies offered by Just Kampers, click here.