This study analyzed the impact of improvements to the driver’s license system for elderly drivers on the incidence of traffic accidents. As South Korea’s population ages, the number of licensed drivers aged 65 years and older has surpassed 4.5 million as of 2024, accounting for approximately 15% of all license holders. Traffic accidents involving elderly drivers have increased steadily and tend to be more severe than those involving younger drivers. In response, the Road Traffic Act was amended in 2019 to shorten the license renewal cycle for drivers aged 75 and older, mandate dementia screening, and require traffic safety education. This study compared traffic accident statistics before and after the policy change (2018 and 2023) and used consulting data from 617 elderly drivers to examine the relationships between driving time, frequency, distance, and potential accident risk factors using a negative binomial regression analysis. The results show that after the policy changes, the number of traffic accidents per 10,000 elderly drivers decreased by up to 20.4%, demonstrating the effectiveness of the reforms. Furthermore, increased driving time, frequency, and distance were all significantly associated with a higher accident risk, whereas older age was linked to fewer accidents, likely owing to self-regulation among elderly drivers. Policy recommendations include limiting continuous driving time to 60 min, encouraging regular breaks, enhancing tailored safety education, tightening license aptitude test standards, and supporting the adoption of advanced safety features in vehicles. This study is expected to contribute to the development of effective policies to reduce traffic accidents among elderly drivers and create a safer traffic environment.