The state's new competitive rate system for auto insurance is aimed at saving consumers money, but the road leading to that savings is a bumpy one.

"It's been kind of a chaotic and stressful situation," said Mark Cuddy of Richardson-Cuddy Insurance Agency in Attleboro.

Drivers whose policies are now up for renewal on April 1 will be the first to benefit from the system, and agents have been scrambling to get them the best premiums and rates.

Until now, auto insurance rates were set by the state insurance commission, and all insurance companies offered drivers the same prices for similar coverage. But under the new system of "managed competition" effective April 1, insurance companies can now offer different rates, allowing consumers to shop around for the best deal.

The state prediction is that almost half of all drivers will save at least 10 percent on their annual premium, and good drivers may save even more. "For the first time in 30 years, consumers have the opportunity to shop for auto insurance," said Kimberly Haberlin, spokeswoman for the state Division of Insurance, which is implementing the system. "They could save a couple hundred dollars."

Starting the process

To start the process, she said, drivers should talk to their agent, look at a range of prices and products and make some comparisons.

One method of comparing is to use the Web site - www.mass.gov/autorates - which was set up by the state last month. It allows consumers to plug in some basic information about themselves and get a sampling of policies and premiums, along with the names of agents who deal with those companies. The information requested includes zip code, years licensed, vehicle type, driving record and coverage levels.

Since the site was launched in February, it has had 567,000 hits, or an average of 19,500 per day, Haberlin said.

But agents say the Web site that was meant to help the process is actually making it more cumbersome.

Jay Barrows of Barrows Insurance Agency in Mansfield, who is also a state representative, said he is disappointed in the Web site.

"It's misleading," Barrows said. "It gives people a low-ball rate."

Then, he said motorists end up asking their agents why the prices being quoted are different from the ones on the Web site.

Cuddy said consumers are being given misinformation because the questions asked on the Web site are too simplistic, and the choices they are given as possible responses are too limited. For example, he said, consumers are asked for the vehicle type but given only four choices when there are hundreds of different vehicles on the road. Another question is how many years they have been driving, and they can select only from 1 year, 4 years, 25 years or 50 or more.

The site, he said, asks so few questions that the rates could be off by as much as 20 percent because so many variables come into play in setting rates for individual policies.

Cuddy, who is a member of the Massachusetts Association of Insurance Agents, said the organization has asked Commissioner of Insurance Nonnie Burnes to either amend the Web site or take it down.

Haberlin said her agency is working to address concerns raised by the agents association. But, she said, "We have not received a single complaint from consumers about the site."

Haberlin also noted that the site is meant as a starting point for consumers, and gives them a range of potential prices and products, then allows them to connect directly with agents and companies for more specific information.

Cuddy is advising consumers to call their agents because every policy is different, and every company offers a range of credits that can affect premiums.

Barrows said determining the levels of coverage each person needs is not as simple as three of four questions, and can't be determined by looking at a Web site because so many options and discounts are involved.

"This is an important decision," he said. "It needs to be made without haste."

The state agency is also advising drivers whose policies do not expire until later in the year to do some comparison shopping now and consider switching midstream if the price is right. But although consumers have the right to change insurance companies midway through the term of their policy, the agency is also advising them that their insurance company may charge a fee for early cancellation.

Barrows is concerned with that advice because he said the system now in place spreads out policies throughout the year, making the process more manageable. He has already extended his business hours to accommodate clients, but he said an onslaught of calls could be difficult for agents to manage.

He recommends that customers sit tight for now because insurance companies want to keep their long-time clients and will keep their rates competitive.

Haberlin said some of the ways companies are competing for customers is to waive the penalty for early cancellation, or to reward those who stay with their existing insurer, which in turn will help drivers save money.

Barrows is not sure how much people will save overall, and expects that rates will simply shift under the new system

"Some people will pay less, and some, perhaps, will pay more," he said.

Cuddy is also uncertain about the true impact of the new system because he said auto insurance rates were going down anyway. But he said for the most part, drivers should see a reduction.

"I'm sure it will work out, but it's confusing," Cuddy said.

To do comparison shopping and also get tips of how to save money, consumers can go to: www.mass.gov/autorates.