Accidents because of drowsiness during driving and similar problems are common these days. To encounter such problems and to assist drivers and traffic control authorities this system can be used. This application uses a number of computer vision and image processing concepts and is intended to simulate the situation of a vehicle in real time. A database of images is used as inputs, which after being processed are used for lanes and obstacles detection. Apart from that the system also removes the side shadows usually produced by the direction of sunlight, for accurate obstacle detection. After lane and obstacle detection it uses real time accident and collision avoidance techniques. This system also informs the driver if the vehicle leaves the lane or if an obstacle is present near it.