AssuranceAmerica Corporation Announces South Carolina Expansion

ATLANTA--Dec. 1, 20039, 2003--Bud Stumbaugh, CEO of ASSURANCEAMERICA CORPORATION (OTCBB: ASAM), today announced that subsidiary AssuranceAmerica Insurance Company, a property and casualty insurer that focuses on the nonstandard private passenger automobile market, will commence writing business in the state of South Carolina later this month.

"We are very excited to begin writing business in South Carolina, and we believe the state will be a vital component to our growth strategy," stated Stumbaugh. "Our research indicates that the market for nonstandard private passenger automobile is approximately $500 million in South Carolina, and the sector is growing at approximately 12% annually."

AssuranceAmerica focuses on the non-standard automobile insurance marketplace, primarily in Florida and Georgia. Its principal operating subsidiaries are AssetAmerica Insurance Agencies, which sells personal automobile insurance policies through its 31 retail agencies, AssuranceAmerica Managing General Agency, and AssuranceAmerica Insurance Company. Established in 2000, AssuranceAmerica Managing General Agency develops and markets insurance products, underwrites insurance risks, adjusts insurance claims and binds new policies. In 2002, AssetAmerica and AssuranceAmerica Managing General Agency wrote an aggregate of approximately $56 million dollars in premiums. AssuranceAmerica Insurance Company, which was formed in the fourth quarter of 2002, began writing business in the state of Georgia on April 1, 2003.

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 statement, including the risk that AssuranceAmerica Insurance Company will not write as much business in South Carolina as is currently anticipated. AssuranceAmerica Corporation undertakes no obligation to update these statements for revisions or changes after the date of this release.