A car that burns oil does not announce it. The level drops a little between checks, the engine seems fine, and the owner keeps topping it up. That slow drop is the kind of problem a service contract is often bought to address, so the first job is to find out whether it is actually there.
Keep a dipstick log for a month
Check the level on level ground, with the engine off and at the same point in each check, such as after the car has sat overnight. Write down the date, the odometer reading, and how much oil you added. A log that shows the car taking oil at a steady rate is more useful than a single reading. Keep the receipts for every top-up, because a shop will want to see them.
Look and listen for the other signs
Blue or grey smoke at startup, or after a long idle, points toward oil reaching the combustion chamber. An oily film on the tailpipe, a fouled spark plug, or a burning smell in the cabin are other signs worth noting. None of these proves the cause on its own. A mechanic should confirm the source with a proper test.
Ask the shop the right question
Ask for a leak-down or compression test, and ask for a written note of what it found. Ask whether the result points to a leak or to normal wear. Those are different answers, and a contract may treat them differently, so the paper matters as much as the test.
Before you compare contracts
Bring the log, the receipts, and the written test result to every quote. Ask each company how it classifies oil use. Ask whether a condition that is already present when you apply is excluded, and what evidence the company wants to see. Keep every answer in writing. A written file also makes it easier to check that each company answered the same questions.