The odometer reading (i.e., the number of kilometers a car has traveled) plays a crucial role when buying or renewing car insurance in India — especially for used cars. Here's why it's important:

Why a Proper Odometer Reading Matters in Car Insurance

✅ 1. Determines the Car’s Usage & Risk

• Higher mileage = more wear and tear = higher risk of breakdown or accidents.

• Insurers consider this while calculating premium rates.

• If the car has low mileage, you might get a lower premium or better terms.

✅ 2. Impacts Insurance Claim Validity

• If there's a mismatch between claimed mileage and actual mileage during a claim, the insurer may reject or delay the claim.

• Accurate odometer data builds transparency and trust.

✅ 3. Essential for Used Car Insurance

• When buying insurance for a second-hand car, the odometer reading helps:

  • Assess the true value of the vehicle.

  • Detect possible odometer tampering (which is common in resale markets).

  • Set an accurate Insured Declared Value (IDV).

✅ 4. Affects Add-On Cover Eligibility

• Some add-ons (like engine protection or zero depreciation) are only allowed for cars below a certain mileage or age.

• Correct odometer reading ensures you get the right add-ons.

✅ 5. Used for Telematics-Based Insurance (Pay-as-You-Drive)

• New-age insurers offer plans where the premium is based on how much you drive (e.g., HDFC Ergo, Bajaj Allianz).

• Odometer reading becomes the basis for such personalized plans.

Tampered or False Readings Can Be Risky

• If the insurer finds odometer fraud (manually reduced reading to show low usage), it can:

  • Lead to policy cancellation

  • Deny future claims

  • Get you blacklisted by insurers

Tip for Buyers:

When buying a used car, match the odometer reading with:

• Service history

• Old insurance records

• RTO paperwork