The oil temperature sensor is an electronic device within your engine that monitors oil temperature. Most sensors in your engine don’t have a recommended service interval; you just have to replace them when they fail. If your engine starts overheating, chances are your oil temperature sensor is not working properly.
Replacing the sensor is inexpensive compared to the damage that can be done. If an oil temperature sensor has failed, the engine won’t know when to shut itself off and will overheat. Ignoring an overheating engine can lead to permanent damage. From a safety standpoint, an overheating engine can leave you stranded. From an environmental point of view, there is no impact from oil temperature sensor replacement.