Starting next Monday (26 April), the sponsorship is designed to connect Absolute Radio's live music listeners with Swiftcover.com's "Get a Life" brand positioning and its ads starring rock legend Iggy Pop.
The activity was booked by media agency Arena BLM and digital agency Steak. It includes Swiftcover.com trails promoting all Absolute Radio's live music events for the remainder of 2010.
Amanda Edwards, marketing manager of Swiftcover.com, said the sponsorship is a great opportunity for it to "engage, interact and have fun with the Absolute audience".
Swiftcover.com will also be the exclusive sponsor of Absolute Radio's One Last Dream competition, which provides listeners with the opportunity to reunite their bands and win the chance to open the Isle of Wight Festival.
Absolute Radio will create 60-second features designed to inspire listeners to "Get a Life" this summer while news editorial strands will tell listeners how to "Get a Life" at the weekend.
Alongside the Swiftcover.com microsite on Absolute's website, the insurer will sponsor Absolute Radio's media player and have branding on the web pages featuring Absolute Radio's live content.
Chris Goldson, commercial director at Absolute Radio, said: "Absolute's live music proposition is easily the best it's ever been, and Swiftcover.com's use of Iggy Pop and Little Iggy has moved their brand into exciting territory.
"Getting together for this year-long musical romance became a very natural next step for us all."