A service contract price is not a single fact about the car. It is assembled from choices and from the vehicle itself, and most of the parts can be seen on paper before you sign. Knowing which parts move the price lets you ask better questions and compare offers that are built the same way.
Factors that come from the vehicle
Vehicle age and mileage at the time of purchase are among the biggest factors, because an older, higher-mileage vehicle carries more risk of a repair. Make and model also matter, since providers may price contracts differently for different vehicles. You cannot change these, but you can account for them when you compare offers, and you should check whether a provider takes the vehicle at all before you spend time on a quote.
Factors that come from the contract
Term length is the length of time or distance the contract runs, and longer terms usually cost more. Coverage breadth matters too: a contract that lists covered parts in detail and a contract that excludes only a short list of parts are built differently and priced differently. The deductible you choose, meaning what you pay at the time of a claim, is often a lever. A higher deductible commonly lowers the price, so ask the seller to show you the price at each deductible level rather than picking one for you.
Factors that come from where you buy
A contract sold at the dealership's finance office may include a markup that is not visible on the summary. Ask whether the price you are shown includes any administrative or dealer charge, and whether the same contract is available elsewhere at a different price. Buying at the time of the vehicle purchase and buying later can also produce different prices, so ask both questions if you are unsure.
How to compare fairly
Compare only offers that match on term, coverage type, and deductible. Our table of vehicle service contract companies compared, term by term is the place to start, because it sets the published terms side by side. Then ask each seller for a written quote with every line itemized, and check whether it matches the contract you would actually sign.