That insurance isn't bad for your age. Is that full coverage? I guess it depends on how much you've put into the car and how much you've gotten out of it. I was fortunate to find a private seller who put more $ into the car than they wanted to because they took it to mechanics. They just got tired of putting $ money into it. Look around and it becomes more apparent that these older cars are being dumped because they've been abused. If you ever want another E30 are you willing to pay a premium and look long and hard for a car that you could have kept?
On the other hand, it's just a car.