AssuranceAmerica Corporation Comments on Its Best Loss Ratio Month in '04 Despite Hurricanes

ATLANTA--Oct. 7, 2004--ASSURANCEAMERICA CORPORATION (OCT BB: ASAM.OB), an Atlanta-based auto insurance-related holding company with operations in Georgia, Florida and South Carolina, announced today that preliminary results indicate that its risk-bearing insurance carrier operations had no adverse impact from the recent spate of hurricanes that impacted the states in which it operates. Further, preliminary results indicate that the carrier operations achieved an approximately 135% increase in pre-tax profit for September 2004 over its previous high profit month of November 2003.

"These preliminary results are especially gratifying because they come at a time when many who follow our company were concerned that the wind, rain and floods from 4 different hurricanes would adversely impact our carrier operations," said Lawrence (Bud) Stumbaugh, President and CEO. "In large measure, these preliminary results confirm the soundness of our business decision to focus our carrier on minimum limits personal automobile risks rather than diversifying into the homeowners market. You can evacuate dangerous areas by driving your cars to safer ground. You can't move homes in a hurry. This factor, along with proper pricing and good underwriting procedures, helped us achieve a net loss ratio, excluding Loss Adjustment Expense, of 64.1% in September 2004. That's a low loss ratio in any month, much less in a month affected by 4 hurricanes."

AssuranceAmerica is a property and casualty insurance organization focused on the on the non-standard private passenger automobile insurance marketplace. It operates through its company-owned retail insurance agencies (TrustWay Insurance), its AssuranceAmerica Managing General Agency (MGA) and its AssuranceAmerica Insurance Company carrier operations. TrustWay operates a total of 32 retail agencies in Florida and Georgia while MGA markets the company's insurance products through over 550 participating independent agencies in Georgia and South Carolina.

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.