Swiftcover.com is about to introduce itself via a national TV ad campaign backed by a £12 million budget.
The company, which is headed by the former Churchill Insurance board director Andrew Blowers, aims to capitalise on the growing amount of car insurance business conducted online.
The figure has risen from around 15 per cent three years ago to 40 per cent today.
MWO was appointed without a formal pitch, although the company held discussions with a number of agencies. Media planning and buying will be handled by Initiative.
Blowers said: "MWO's experience with Direct Line is obviously helpful and the agency knows the insurance business.
"However, we would not have appointed it had we not liked its brand suggestions."
TV advertising, due to break this Friday during ITV's Coronation Street, will focus on the shortcomings of call centres by featuring customers who are getting frustrated by clucking, headset-wearing chickens.
MWO had been looking to replace its Direct Line account since November last year, when the agency relinquished its eight-year tenure of the business to Clemmow Hornby Inge.
Tim Mortimer, the managing director of MWO, said: "No-one else in the market can say what Swiftcover is saying. It is the first of a new generation of insurers and we're incredibly excited to be a part of all that."