BOSTON -- For the first time in the memory of most Massachusetts drivers, they will have the opportunity to shop for the lowest auto insurance rates under a plan announced by the state on Monday.

Insurance Commissioner Nonnie Burnes promised lower rates under a plan that she said would transition to managed competition among insurers.

The plan "will benefit consumers with good driving records regardless of where they live," Noones said in a statement released by her office. Drivers will be able to take advantage of competitive rates for policies renewing on or after April 1, 2008.

Massachusetts is currently the only state where state regulators, not the market, set car insurance rates.

“Taking gradual steps to introduce competition to the auto insurance market will have a positive impact on consumers across Massachusetts,” said Burnes. “Drivers stand to realize benefits from lower rates."

A study group appointed by Gov. Deval Patrick found that some form of competition was essential to keep companies doing business in the state. Since 1990, 35 companies have stopped doing business in Massachusetts.

Under the new regulations, which don't need legislative approval, insurance companies will still need to get the approval of Burnes' office, submitting their proposed insurance products and rates before offering them to the public.

The plan has its skeptics.

Deirdre Cummings, program director for the consumer advocacy group MassPIRG, said she's reserving judgment until she's had more time to study the issue.

Cummings it would be better to ban outright rates based on socio-economic factors like education, occupation and home ownership. She also hoped the new regulations are the subject of a public hearing before they are made final.

"The devil will be in the details," she said. "There are clearly ways to design a competitive insurance market preserving consumer protections."

Others applauded the plan.

Joseph Meador, a professor in the college of business at Northeastern University and a member of Patrick's auto insurance task force, said Burnes' proposal bring some reality to the auto insurance rate-setting process.

"Hopefully (insurers) will be able to develop more accurate rates and be able to reflect groups of drivers' actual cost in setting rates, rather than some arbitrary statewide average," he said.