Oil life indicators in modern cars are accurate and calculate remaining oil life based on various factors beyond just mileage.
The algorithm behind these indicators was developed by General Motors engineers in the 1980s, taking into account engine cycles, injector activations, water temperature, and oxidation.
The system advises oil changes before the oil is completely degraded and recommends changing oil at least once a year, irrespective of mileage.
Real-world tests have shown that these oil life monitoring systems are somewhat conservative, indicating oil changes as a precaution rather than waiting for oil to be completely worn out.