Automobile Insurance is the most important business in Non-Life insurance company in Taiwan. Regarding the business portfolio of a Non-Life insurer, more than half of the premiums are from Automobile Insurance which is comprised of about 30% premiums from automobile physical damage insurance. Therefore, the operation results of Automobile Insurance will have a significant impact on insurers. In Taiwan insurance market, there are three kinds of standardized automobile physical damage insurance and some non-standardized policies, with some related additional clauses. There are similar automobile insurance policies and related clauses for use in Mainland China insurance market. We entered into meaningful discussions on the comparison of the policy terms and conditions of automobile physical damage insurance between Taiwan and China. We compared the cross-strait difference of insurance terms and conditions with their related clauses of automobile physical damage insurance policy and automobile theft insurance policy. We hope these comparisons can help the cross-strait insurers learn each other’s strengths of policy design to improve the policy terms and conditions.