AssuranceAmerica Corporation Announces First Policy in Arizona

ATLANTA--ASSURANCEAMERICA CORPORATION (OTCBB: ASAM), an Atlanta based insurance holding company with operations in the Southeastern & Southwestern United States announced today that AssuranceAmerica Insurance Company wrote its first auto insurance policy in the state of Arizona. While its insurance company or managing general agency (MGA) is licensed to write in fourteen states, Arizona becomes the eighth state in which AssuranceAmerica actually conducts business.

In announcing its newly initiated sales effort in Arizona, Lawrence (Bud) Stumbaugh, President and CEO of AssuranceAmerica Corporation, the parent holding company of its insurance carrier and MGA, said "Arizona is attractive because it is the seventh fastest growing state in the nation and a top market for nonstandard auto insurance. According to National Auto Insurance Report, Arizona has a history of ten consecutive years of generating profits in personal lines auto insurance with average underwriting profits exceeding 10% the past 3 reported years. It is the 15^th largest auto insurance market with over $3.4 billion in annual gross written premium. And, obviously, it also adds to our geographic diversity. We are happy to announce our first policy, and even more pleased that we actually added several policyholders in our first week of business in Arizona."

AssuranceAmerica focuses on the specialty automobile insurance marketplace, primarily in Alabama, Florida, Georgia, South Carolina, Texas, Louisiana, Mississippi, and Arizona. Its principal operating subsidiaries are TrustWay Insurance Agencies, LLC ("Agency"), which sells personal automobile insurance policies through its 50 retail agencies, AssuranceAmerica Managing General Agency LLC ("MGA"), which markets the company's insurance products through over 1,800 participating independent agencies, and AssuranceAmerica Insurance Company ("Carrier").

This press release includes statements that may constitute "forward-looking" statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, as discussed in the Company's filings with the U.S. Securities Exchange Commission (SEC). Historical results are not indicative of future performance.