BOSTON -- Bay State drivers will be paying an average of 11.7 percent less for automobile insurance next year, the Massachusetts Insurance Commission announced Friday.

The cut will result in an average decrease of $119.61 per vehicle and a statewide average annual rate of $898.81, Insurance Commissioner Julianne M. Bowler said.

"I love that. We moved to Massachusetts about four years ago and to us, it was shocking, the rates. And to find that there were only like three companies that insure us, that was kind of a shocker," said driver Ellen Fitzpatrick.

Officials said the rate cut will save Massachusetts drivers $479 million in 2007 -- the largest rate decrease since 1978. Drivers enjoyed an 8.7 percent cut in 2006.

"I think it is crazy. I think it is highway robbery," one driver said about the Massachusetts auto insurance system.

The attorney general had pushed for an even steeper cut of 18 percent, and the insurance industry wanted a 3.7 percent decrease. Both proposals had been in the hands of the insurance commission for months.

"There's lots of testimony that goes into this. There are a number of factors that have to be looked at, and there are recommendations from various parties. This is still a very significant reduction," said Janice Tatarka of the Massachusetts Office of Consumer Affairs.

The new rate will take effect on April 1, 2007. Officials said the rates will not go into effect on Jan. 1 as a result of a recent change in the law.