Progressive Insurance, which began selling auto insurance policies in Massachusetts less than a year ago, is on the verge of breaking into the ranks of the state’s top 10 sellers.

Progressive does not release market share data for Massachusetts, and state officials haven’t required any disclosures. But extrapolating from Progressive’s 2008 year-end filing with the state, it appears the company has sold more than 100,000 policies here, or about 1.5 percent to 2.5 percent of the market. That would make Progressive the 11th- or 12th-largest carrier in the state.

It’s a fast start for the Ohio-based company, particularly since it is selling policies only over the Internet and most auto insurance sales in Massachusetts are handled by agents. Yet the company isn’t turning a profit. The 2008 filing indicates Progressive pocketed $23.9 million in premiums in 2008 and paid out or incurred losses of $24.3 million.

“Overall, we’re very pleased,” said Cathy Witten-Bransch, Progressive’s product manager for Massachusetts. “Based on the sales volume we’ve seen and the reaction we’ve seen from customers, they’ve embraced what we’re doing.”

But other players in the Massachusetts auto insurance market aren’t so pleased. Several competitors and the state’s agents association say state regulators have given preferential treatment to Progressive. The Ohio-based company and the handful of other new entrants to the market have been given a two-year reprieve from having to insure high-risk drivers. Progressive is also asking that it not be required to pay a share of the deficit run up by a pool that historically has been insuring high-risk drivers. And the company faced no major disciplinary action when it posted thousands of inaccurate price comparisons on its website that overstated what its competitors were charging.

“If one of my members gave 21,000 inaccurate quotes, they’d be out of business,” said Frank Mancini, president of the Massachusetts Association of Insurance Agents. “We think the commissioner is taking her orders from Progressive.”

Insurance Commissioner Nonnie S. Burnes, a former judge, says she is not taking orders from anyone. “I am trying to make sure that no one gets preferential treatment,” she said. “The whole culture here has been these backroom deals. I have made no backroom deals with anybody.”

Arbella Mutual Insurance Group of Quincy is suing Burnes, alleging she broke the law when she ruled Progressive and other new entrants to the market would not have to write policies for high-risk drivers for two years. Industry officials say companies lose about $500 a year insuring each high-risk driver, which means they have to charge other drivers more to cover their costs. Not having to cover losses on high-risk drivers gives Progressive a competitive edge, the industry officials say.

“Why should we have to subsidize the third-largest automobile insurance writer in the nation?” asked an official at one company, who asked not to be identified.

Burnes said her decision on high-risk drivers had nothing to do with preferential treatment. She said her agency researched how other states handle new entrants and concluded a two-year reprieve was fair and consistent with what most other states were doing. She said new companies need time to adapt to an unfamiliar market.

Witten-Bransch of Progressive acknowledged there have been some bumps in the road as the company has moved into Massachusetts, including the inaccurate price comparisons (since removed) on its website and trying to adapt to rules and procedures which are unique to Massachusetts. She said she would like to see Massachusetts give companies more flexibility in setting rates and do away with an appeals board for handling consumer appeals of insurance company findings that a driver is at fault in an accident. She also said the company wants to start selling policies through agents in Massachusetts, but is moving slowly on that front.

Prior to April 1 last year, auto insurance rates in Massachusetts were set by the state Division of Insurance and companies had little flexibility to offer different prices. Under the new system of managed competition, companies can set their own rates, and those rates take effect unless they are disapproved by the commissioner. The new system has attracted seven new companies to the market, with Progressive by far the biggest.

Aside from Progressive’s rapid growth, there has been no major changes in the marketplace. Commerce Insurance of Webster remains the state’s top automobile insurer with 31 percent of the market, followed by Safety Insurance (11 percent), Arbella (9.5 percent), and Liberty Mutual (8.75 percent).