EXHIBIT 23


              Independent Auditors' Consent and Report on Schedules



The Board of Directors
Donegal Group Inc.:


The audits referred to in our report dated March 2, 1999 include the related
financial statement schedules as of December 31, 1998, and for each of the years
in the three-year period ended December 31, 1998, included in the annual report
on Form 10-K. These financial statement schedules are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statement schedules based on our audits. In our opinion, such
financial statement schedules, when considered in relation to the basic
consolidated financial statements taken as a whole, present fairly, in all
material respects, the information set forth therein.

We consent to incorporation by reference in the registration statements (Nos.
333-1287, 333-06681, 33-26693 and 33-61095) on Form S-8 and registration
statement (No. 333-36585) on Form S-3 of Donegal Group Inc. of our report dated
March 2, 1999, relating to the consolidated balance sheets of Donegal Group Inc.
as of December 31, 1998 and 1997, and the related consolidated statements of
income and comprehensive income, stockholders' equity and cash flows and related
financial statement schedules for each of the years in the three-year period
ended December 31, 1998, which report appears in the December 31, 1998 annual
report on Form 10-K of Donegal Group Inc.


KPMG LLP

Philadelphia, Pennsylvania
March 26, 1999