A service contract is sold as a price, but what you pay over its life is shaped by several lines in the paper. The sale price is where the math starts, not where it ends. This guide covers the cost drivers a buyer can read in the contract and how to check each one before comparing offers.
What moves the total
Length of term, coverage level, per-claim limits, bundled add-ons, the renewal rate, and any fee tied to the sale all change what you pay. Each is a separate line in the paper. Ask the seller to put each line on the same sheet so that offers can be lined up side by side.
The refund line sets the cost of leaving early
If you cancel before the term ends, the contract says how unused time is returned. Ask whether the refund is calculated by time, by claims paid, or by a fixed schedule. Ask whether a cancellation charge comes off before the refund is figured. Ask who issues the refund, to whom it is paid, and within what period the paper says it will be paid. A lower sale price with a steep early-cancel charge can cost more over the term than a higher sale price with a plain refund.
Check the state rule before you rely on any figure
Each state page on this site restates the cancellation rules that this edition has read and names the regulator. Read the page for your state, such as the Arizona rule and roster page, before you rely on any refund figure a seller gives you. Where a page says this edition has not read a rule, ask the seller for the rule text in writing.
Questions to ask before you sign
Ask for the full contract, not the summary. Ask which lines change at renewal and by what stated method. Ask whether the sale price includes any service fee and what that fee covers. Write down each answer along with the name of the person who gave it. Compare offers only after every line is on the same sheet.