it may not sound fun, but the money saved on fuel etc.. can fund your Z project..
you will come out ahead more than likely, as if the NADA blue book value is around 4600, you will pay around 25% or less to keep the car.....
I have a 2001 S10, loaded, 4.3 with a 5 speed, ZQ8 sport suspension, extended cab yadda yadda, power everything with 28k miles. I had it 3 weeks and was hit from behind and the truck was considered to be a total loss.. .. State Farm gave me 12.5 k for the truck and the buy back was only $1300.00. I kept it and fixed it for $2500.00, doing all of the work myself except for the frame pulling..... So.. the answer is, you should come out ahead, just do the math.. And no offense to the camaro and t/a crow, but they are a dime a dozen.. much more fun to be had with your LT1 pulling around 1000 lbs less....