AssuranceAmerica Corporation Announces Regulator Approval to Enter 7th State

ATLANTA--Dec. 1, 20059, 2005--ASSURANCEAMERICA CORPORATION (OTC BB: ASAM.OB), an Atlanta based automobile insurance enterprise today announced that its subsidiary, AssuranceAmerica Insurance Company, has received approval to commence operations in the state of Mississippi. This will be the seventh state that has given approval to AssuranceAmerica's carrier and/or MGA to write automobile insurance policies. In addition to Mississippi, these states are Georgia, South Carolina, Florida, Alabama, Arkansas and Texas.

In announcing approval of its carrier's entrance into Mississippi, Lawrence (Bud) Stumbaugh, President and CEO of AssuranceAmerica Corporation said, "We are pleased to find the welcome mat out for us in Mississippi as well as the other states where we have been approved to write insurance. Hopefully, additional announcements of this nature will be made from time to time in the future as we continue to carry out our strategy of geographical diversification in our effort to write non-standard automobile insurance."

AssuranceAmerica focuses on the specialty automobile insurance marketplace, primarily in Florida, Georgia, Alabama and South Carolina. Its principal operating subsidiaries are TrustWay Insurance Agencies ("Agency"), which sells personal automobile insurance policies through its 32 retail agencies, AssuranceAmerica Managing General Agency ("MGA"), 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).