The competition among insurance companies is growing in Massachusetts. The government of the state finally allowed the insurance companies to set their rates as they want.

About 20 companies are marketing their rates and start advertising their service in the state this Spring. The companies like Liberty Mutual Group and Peerless Insurance already have their independent agents there offering different kinds of insurance.

Progressive is being slow. They are just studying the market right now. Though they are already offering commercial auto coverage in Massachusetts, the company plans to start personal auto insurance campaign only in May. In the beginning it will be the Internet service only. If it will prove itself doing well, the company will arrange the work of the independent agents as well. Progressive is going to offer very low rates and this is how they plan to win the customers. They say the interest rate would be in average 18 percent lower than the drivers in Massachusetts paid in 2007.

Its biggest competitor GEICO is aimed for the state as well. Its owner said in August 2007 that they would like to be in Massachusetts and have their service there. Right now they are only studying the situation in the state and are offering commercial coverage.

The experts say if the giants like Progressive and GEICO will come to the Massachusetts market they may kill all the other little insurance companies in the state.