The Direct Line Group-owned insurer after it was revealed the actor had been disqualified from driving for speeding offences.
To ensure it does not miss out on customers during the important New Year period, Churchill has launched a series of 10-second TV ads featuring its nodding dog character.
Each of the three clips promotes specific products, including guaranteed hire car and multi-car discount with its car insurance, and 12 months' cover for the price of eight on home insurance.
It is understood that a new, long-term ad campaign is currently in development by agency WCRS, with a planned launch next month.
Clunes first appeared in a Churchill ad on Boxing Day 2011, becoming the latest ambassador for the firm. Previous celebrities to have featured in ads include Rolf Harris, Roy Walker, Melanie Sykes and Ricky Hatton.