All motor insurance customers, who held a policy and paid premiums from March 24 to May 13, are eligible for a rebate.
This includes customers with car, caravan, trailer, classic vehicle and motorhome policies.
AA Insurance chief executive Chris Curtin said it became clear "very early on" that many insurance holders would be affected by the economic impacts of Covid-19.
"We quickly determined three initiatives that we strongly felt were the right things to do to help customers."
Those initiatives included creating a $2 million hardship fund, freezing premium increases across personal motor, home and contents products and also giving premium rebates to customers with motor insurance.