Exhibit 99.1

ASSURANCEAMERICA CORPORATION RAISES $5 MILLION THROUGH OFFERING OF CAPITAL
SECURITIES

Thursday December 22, 4:21 pm ET

ATLANTA--(BUSINESS WIRE)--Dec. 22, 2005--AssuranceAmerica Corporation (OTC BB:
ASAM.OB - News), announced today that it has completed a $5 million private
placement of capital securities through a subsidiary trust. The capital
securities have a floating interest rate equal to the three-month LIBOR plus
5.75%. The capital securities mature on December 31, 2035 and can be redeemed by
AssuranceAmerica Corporation ("AssuranceAmerica") on or after December 31, 2010.
Payments under the capital securities are guaranteed by AssuranceAmerica. Keefe,
Bruyette & Woods, Inc. acted as placement agent on this transaction.

AssuranceAmerica will use the approximately $4.5 million of net proceeds from
the offering to provide additional capital to its subsidiary AssuranceAmerica
Insurance Company, support acquisition activity and for general corporate
purposes. "We feel good about increasing our capital base with proceeds of the
offering as we believe it will position AssuranceAmerica Corporation for
continued success in growing our insurance and agency business," said Lawrence
(Bud) Stumbaugh, President and Chief Executive Officer.

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, including competitive
conditions in the insurance industry, levels of new and renewal insurance
business, developments in loss trends, adequacy and changes in loss reserves and
actuarial assumptions, timing or collectibility of reinsurance recoverables,
market acceptance of new coverages and enhancements, changes in reinsurance
costs and availability, the integration and other challenges attendant to
acquisitions, and changes in levels of general business activity and economic
conditions. For a description of additional risks and uncertainties to which
AssuranceAmerica is subject, see AssuranceAmerica's filings with the U.S.
Securities and Exchange Commission.

Contact:
AssuranceAmerica Corporation, Atlanta
Mark H. Hain, 770-952-0200 Ext. 259
Fax: 770-984-0173
MHain@aainsco.com