Physiological changes in cognitive competence in the elderly are clearly different to pathological changes such as dementia. Diagnosing dementia is not to be equated with absolute driving inability. During the course of dementia, the risk of an accident increases significantly. Detailed observation and regular checks serve to determine the appropriate time to hand in the driving licence. The basis of each decision should be a detailed history of the person and his or her immediate family. Attention should be paid to incorrect driving practise, unusual behaviour and uncertainty whilst driving as well as involvement in any accidents. An MMSE score below 24 or a CCT score up to 3 should result in an additional assessment being carried out, e.g. neuro-psychological tests, driving simulator or, if necessary on-road tests performed with specialists. Also helpful is the determination of functional status. Limitations in ADL or IADL function normally indicate an advanced stage of dementia. Due to the progression of the illness, the possibility of handing in the driving licence should be addressed as soon as possible. In this context, it is helpful to consider alternative forms of transportation. Individual wishes and needs must to be balanced against general road safety requirements.