EXHIBIT 99.2

ASSURANCEAMERICA CORPORATION ANNOUNCES REGULATOR APPROVAL TO BEGIN OPERATIONS IN
TEXAS

ATLANTA, GEORGIA --- August 18, 2005

Atlanta (Business Wire) ASSURANCEAMERICA CORPORATION (OTC BB: ASAM.OB), an
Atlanta-based insurance enterprise with operation in Georgia, South Carolina,
Florida, and Alabama, announced today its subsidiary, AssuranceAmerica Insurance
Company, has received approval from the Texas Department of Insurance to
commence insurance operations in that state.

In announcing approval of its carrier's entrance into Texas, Lawrence (Bud)
Stumbaugh, President and CEO of AssuranceAmerica Corporation said, "We are
better served to focus on the non-standard personal auto niche market rather
than attempting to be a 'jack-of-all-trades'. However, spreading risk and
expanding opportunity is wise in any business and we chose to geographically
diversify our business. Approval from Texas is part of our stated goal of
diversifying into multiple states. Texas is our biggest potential market. We
will work to make it our best state by making sure the market share we develop
there is both profitable and long term."

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

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).


Contact:
AssuranceAmerica Corporation
Atlanta, Georgia
Renee A. Pinczes
770-952-0200 Ext. 105
770-984-0173 - Fax
RPinczes@aainsco.com