The warning comes after two drivers in their 90s crashed while driving in Dunedin this week.
One man, a 95-year-old, did not check if the lanes were clear when crossing Cumberland St from the off-ramp on the Jetty St bridge towards Police St at 12.40pm on Monday.
A motorist could not avoid him and the two vehicles collided, but the man’s car continued on and crashed into a parked vehicle, police said.
At 6.25pm on Wednesday, a 97-year-old man’s car hit the kerb in George St at the intersection of Pine Hill Rd and crashed into an oncoming vehicle.
He then panicked, put his car into reverse and crashed into the car behind him.
Otago Coastal area road policing manager Senior Sergeant Karl Hemmingsen said driving was tied to independence.
"There’s an awful lot of pride associated with driving and people are reluctant to let it go, but is it worth it when you are putting yourself and others at risk?"
He said it might be hard for people to notice, or accept, that driving was becoming unmanageable, but older motorists should listen to the people around them when told it might be time to hang up the keys.
"Listen to your families. They are the ones that know you the best."
People aged 75 need to complete a medical check to renew their licence and had to do so again at 80.
After that, they need to complete the medical and renew their licence every two years.
AA driving school national delivery manager Kirsty Vincent said while people might be able to continue driving well into their 80s and 90s, abilities changed as people aged.
"Some of those changes — including our vision, hearing and ability to react quickly — can affect our driving over time."
Research conducted by the AA research foundation showed that while older drivers were involved in fewer crashes compared with other age groups, increased fragility meant they were more likely than others to get injured.
"We encourage all drivers to take note of factors impacting their driving as they age and discuss transport alternatives with friends and family if they are concerned.
"It may not mean that it’s necessary to stop driving altogether; however, we need to be aware of, and manage, our driving limitations both for our own safety and that of other road users."
A report by the AA shows that by 2028, one in four New Zealand drivers will be 65 years or older and as health technology improves and more people live longer, that number will increase.
"Most of our roading infrastructure is designed for the quicker reactions of younger generations but, with an ageing population, it’s time to drive change on our roads," the report said.
It recommended more roundabouts instead of traffic signals or signs, more warning signs about upcoming intersections, especially where lane choice was critical, and better right-turn support.