Allianz is to give a €30 refund to its private car, van and taxi customers.
The move is a recognition of an expected lower level of claims that will arise due to the Covid-19 crisis, as a result of fewer vehicles being on the road.
Allianz said the total cost of the refunds will be €9m.
"We recognise that our country, our communities and our customers are facing very challenging times and hope this refund will help our customers as we pass on this saving to them as a result of the reduction in claims we are receiving," said Sean McGrath, CEO at Allianz Ireland.
The refunds will cover the period from the middle of March and run until the end of May.
Customers will not have to do anything to receive the payment, the insurer said.
Allianz has also introduced a range of other measures to assist its customers across a range of segments.
The company is the latest insurer to outline how it will offer refunds and rebates to motor customers, after a number signed up to a range of common principles last week.
Liberty Insurance said yesterday it will offer motor customers rebates of €5m as a result of the reduction in claims due to the Covid-19 restrictions.
Each customer will receive 15% of their existing premium for two months, provided this reaches a minimum amount of €10, Liberty said.
Axa also said yesterday that it was putting in place a rebate or refund package worth up €20m for its 600,000 customers. The measures could be worth about €30 per customer on average.
Insurer RSA also said it will communicate with its motor policyholders in the coming weeks.
Several other insurers here have agreed to discount premiums or give refunds to motor customers in recognition of an expected reduction in the volume of claims during the Covid-19 emergency.
It follows pressure from the Minister for Finance, the public, businesses and insurance re-sellers for action on the matter.
Insurance Ireland said the insurers recognise that reductions in the amount of road use means the level of claims being submitted will be lower.
It said the support applied by each company will reflect their individual claims experience to date and given the different pricing models and customer profiles of each insurer, the precise amounts will vary.
It added that he situation will be further reviewed if restrictions due to Covid-19 are extended through the summer and this results in sustained lower road usage and claims.