"It's a wonderful day for drivers,'' said Insurance Commissioner Nonnie Burnes, who predicted most would see premiums fall 10 percent. "It also could be a good day for business,'' as more companies enter the market in the state, bringing jobs with them, she said.
The 31-year-old price controls, in which the state set the rates charged by all companies, have led to the exodus of major insurance providers, according to critics. Today about 20 insurers sell policies for the state's drivers, down from 1989 when there were 61, according to Massquotes, an organization of insurance agents.
Regulators will consider proposed rate changes submitted by individual insurers under the so-called managed-competition plan. The changes attracted Progressive Corp., the nation's third- largest auto insurer, which was approved to start selling insurance online to Massachusetts drivers beginning May 1, Burnes said. The state is the last in the country to abandon price controls, she said.
"We appreciate the work the division has done to create a regulatory environment that allows companies to compete for customers,'' said Cathy Wilton-Bransch, Progressive's Massachusetts product manager, in a statement in February announcing the decision to enter the market.
Allstate Corp., the No. 2 auto insurer, is "monitoring the situation'' in Massachusetts, said spokesman Rich Halberg. The company, based in Northbrook, Illinois, hasn't been selling auto policies in the state, he said.
The nation's largest auto insurer, State Farm Mutual Automobile Insurance Corp., isn't taking on new drivers in the state and has no plans to do so, said spokesman Fraser Engerman. The policyholder-owned company, based in Bloomington, Illinois, continues coverage for customers who move from other states to Massachusetts, he said.
Even before deregulation, auto rates in the state were declining. The average decrease last year was about 12 percent, according to the state.