Methods and systems are providing for improving engine coolant level estimation to reduce engine overheating. The level of fluid in a coolant overflow reservoir is inferred based on the fluid level in a hollow vertical standpipe fluidically coupled to the reservoir at top and bottom locations, while the fluid level in the standpipe is estimated based on output from an ultrasonic signal transmitted by a sensor positioned in a recess at the bottom of the vertical standpipe. Sensor power usage is optimized based on the ratio of first order and higher order harmonic echo times in the raw data set generated by the sensor.