I'm a young female student, under 21, and I have had a 1981 SWB Series 3 Diesel since I started driving. I love it. It is cheap to insure, relatively cheap to run and really good for getting around the back roads in my area (also rural). Whilst it isnt speedy, it will happily trundle along at 60mph, and with an overdrive the fuel economy is much improved! I have used it on motorways without feeling too stressed. You just gotta realise it isn't as nippy as a modern car and never will be. If you want a landrover, you will never have a fast car! My mum's disco is slower than mine up hills so newer isnt always better! With the insurance, it usually makes a big difference when you put a limit on the mileage (mine at 8,000 and that fine. standard insurance limit is about 10,000) and put your parents as named drivers (the companies take this as the idea that you won't be driving so much and therefore not such a risk!) I'm with Sabre, as is my sister and my deal is so good that hers is only about 50 quid cheaper a year even though she is 23. I hate to say it but its you being a bloke that is making it so expensive. Your age group is highest risk so anything you insure on your own is gonna kill you with the price!
I do alot of work myself for the car. The parts themselves are usually very cheap and landrover being landrover, most things from newer models can be fitted into the Series 3. I have simply invested in getting a decent socket set (check sizes before buying as the old landrover bolts arn't the same spec as on modern cars), a set of jump leads and lots of WD40!!! I am slowly upgrading my car according to my budget, which is great with landrovers as you can use it during the week and then do little things at the weekend. I would say its worthwhile finding as many old landy owners around you as they can usually tell you about someone who breaks up landrovers (I have got some amazingly good deals on parts like overdrives and body panels!) Some things like lights are so cheap new. My dream is to get mine soundproofed.
Another point is working out if the car you buy is work the work. I found mine in a field for 250 quid where it was filthy but the engine was in perfect order. A good scrub and it was good to go. Often there are people who don't realise that their grubby scruffy looking car is as good as it actually is. On the otherhand where people have begun working on the car, they often expect a return for it and charge alot extra.
The pluses for doing a Series 3 up are:
It will never decrease in value. Improvements increase value and they are always in demand (classic car remember!)
It teaches you to drive well (no power steering + town parking spaces = one amazing parker!)
It will last forever if you treat it right
With the right tools and the Haynes manual you can do anything to this car yourself (saving those £50phr labour costs)
Parts are dirt cheap so when stuff goes wrong it isn't the end of the world
It allows you to enter into the amazing world of landrovers! I love getting waves from fellow landy drivers on my way to work!
I have grown to love my car more than I ever thought possible. The same is true for my sister in her series 2! Itwill be a car for life!
Negatives:
Stuff will go wrong. My battery started draining at random times (was a duff earth in the end), including on the day I had a 9.00 am A-Level Exam!!
It is noisy as hell. But i have grown to love even that fault!
It is time consuming to do it. it must be a long term project. don't expect your dream car in a couple of months unless you have endless cash, an army of helpers and one hell of a lot of spare time!
Hope this helps, seeing as I'm pretty much in exactly the same position as you. Good Luck!