Motorists will be refunded part of their 2017 greenslip under the NSW Government's new compulsory third-party insurance plan.
The State Government said $300 million in refunds would be electronically returned to motorists who have renewed their green slips since December 2016.
Motorists in Sydney will have the largest refunds, which would average out to $70, while country drivers will receive an average of $30.
Refunds will vary depending on when and where the greenslip was renewed.
"The most will be up to about $125 and that will depend on when you pay your premium," Minister for Finance Victor Dominello said.
"So if you pay your premium in December this year then you're likely to get the higher amount."
The millions of dollars in refunds are the result of the Government's crackdown on high premium costs, the Minister said.
"We've reigned in super profit and now we're seeing the dividends getting paid to motorists," he said.
"We'll start seeing the new scheme come into place by the end of the year. Therefore refunds will start taking place next year but we'll have more to say about the timing and the method in the months ahead," Mr Dominello said.
The refunds will be paid electronically and in some cases by cheque.
Under the Government's new scheme, motorists will also save $120 on an average premium from December 1 this year.
Premier Gladys Berejiklian said the changes would see the average premium drop from $650 to $528 a year.
