Experian claims it will become the first company to offer indemnity cover for vehicle mileage checks, boosting the appeal of its services to used car dealers.

The new indemnity, part of Vehicle Mileage Check (VMC), has been developed to help manufacturers, franchised dealers and customers recover lost value on used cars in the event that an Experian check should fail to highlight inaccurate or 'clocked' mileage.

Neil Hodson, sales director at Experian's Automotive Division, said the indemnity scheme underlined the company's confidence in VMC.

"The launch of vehicle mileage indemnity has come in response to growing demand from the marketplace," he said. "We now offer the most comprehensive level of protection for dealers and customers."

The scheme, backed by Pinnacle Insurance, provides varying levels of compensation for the difference between the car's true value and the price paid by a customer that has relied on the clocked mileage.

Designed to safeguard dealers' reputations, the scale of compensation will depend on the extent of the value lost through mileage misrepresentation.