To evaluate the electrical contact behaviors of silver metal oxide contact materials in relays application more accurately, and to guide the selection of contact materials, the test device and testing method for simulating electrical contact performance in relays application were analyzed in this paper. The electrical contact simulation test system was designed and developed, which can easily simulate contact materials. The contact resistance, static force and rebound energy degradation parameters of AgSnO2, AgCdO and AgNi contact materials under the same load conditions were obtained through experimental research, the contact resistance and arcing energy degradation parameters of AgSnO2 under different opening distances were acquired at the same time. The result indicated that accurate data are received by the electrical contact simulation testing method. Finally, based on the test data, the degradation performance of three selected test materials was tested, and the failure mechanism of AgSnO2 materials was analyzed.