A service contract is usually bought at the point of sale, and its cancellation terms are the part most buyers read last. Those terms decide how much of what you paid comes back if the plan ends early. Read them as part of the cost, not as an afterthought.
Find the refund formula
Contracts describe refunds in a few general ways: a return based on unused time, a return based on unused coverage, or a return with a flat amount taken out. Check which method the contract names, and whether it is stated as a formula you can work out yourself. If the contract only says the refund will be calculated later, ask for the calculation in writing before you buy.
Ask whether the seller keeps an administrative charge, and whether that charge comes out before the refund or appears as a separate line. If the contract was financed, ask whether the refund goes to you, to the lender, or to both, because a financed contract can route money differently.
Read the start of the clock
The date you ask to cancel and the date the cancellation takes effect are often different. Some contracts count from the day a written request arrives, and others count from the day the company processes it. Find out which date the contract uses, and how you would prove you sent the request. Keep a copy of the request and a record of how it was delivered.
Check what happens when the car changes hands
Transfer and cancellation are closely linked. If you sell the vehicle, some contracts allow the plan to move to the new owner, some end it, and some require paperwork or a fee before a transfer is accepted. A plan that transfers may keep more of its value than one that ends on sale. Ask which rule applies before you agree to the purchase, and ask the seller what they will need from you at the time of sale.
Ask about the waiting period and open claims
A waiting period is the stretch of time after purchase when the plan does not yet pay for certain repairs. A cancellation inside that window may be treated differently from one made later. Ask whether a claim already opened, or a repair you have authorized but not finished, changes the refund. Ask whether cancellation is allowed while a claim is pending.
Questions to put in writing
Ask for the refund formula with a worked example based on your own purchase details. Ask what the cancellation request must contain and where it must be sent. Ask the seller to state the date the refund clock starts. Ask who receives the refund. Ask whether transfer on sale is allowed, and what paperwork or fees it requires. If an answer is only spoken, ask for it in the contract or in a written notice before you sign.
Where the published figures sit
This page describes the general process. It does not list any contract's refund method, charges, or terms. For a brand's own service contract terms, start with the Acura service contracts page, which covers factory terms, when they end, and what a contract adds: Acura service contracts: factory terms, when they end, what a contract adds. Compare the cancellation section of any contract you are offered against this checklist before you decide.