Some of Ireland’s biggest motor insurers have agreed to offer refunds on premiums due to the COVID-19 crisis.

Insurance Ireland said the discounts would reflect an expected fall in claims, with less people on the roads during the lockdown.

Allianz, AXA, FBD, RSA and Zurich have all signed up to the plan and will let their customers know what level of refund they can expect in the coming weeks.

Insurance Ireland CEO Moyagh Murdock said it is “clear that road usage levels have fallen significantly” in the weeks since the restrictions were announced.

“While the duration of these restrictions is still uncertain and it is still too early to fully assess the financial impact on the motor insurance sector, but recognising the unique challenges in the Irish market, insurers have agreed to address the issue by signing up to a set of core principles,” she said.

Each company will be assessing the drop in the claims they have experienced before calculating the level of discount on offer and making contact with customers.

If the restrictions are extended further into the summer, the companies have agreed to review the situation again.

“This is good news for Irish motor insurance customers and comes following the introduction of a number of other supportive customer measures from Irish insurers spanning motor, home, business and health insurance,” said Ms Murdock.

“Irish insurers understand that many customers are experiencing difficulties related to the COVID-19 crisis and are keen to assist wherever they can.”

It comes after the country’s life insurers agreed to offer a range of discounts and refunds to customers due to the agreement that has seen private hospitals used for public patients for the duration of the crisis.