TWO PEOPLE are in hospital following a traffic incident on Lady Belmore Drive at Boambee East around 2pm today.
Emergency services were called to the location after a Mitsubishi Magna struck a parked Holden Commodore.
Bystanders said the 60-year-old female driver of the Magna appeared to slump in the seat as her vehicle ran across the road and came into contact with the Commodore.
Continuing on its path the Magna then collided with a road sign and a bin.
It continued down a footpath, grazing a wall before slamming into a large brick wall.
The driver was trapped but quickly released by SES personnel.
The woman's front seat passenger, a 12-year-old boy, was not trapped but sustained serious neck injuries.
The owner of the Commodore was one of the first on the scene to render assistance.
"I was sitting inside having lunch and heard a big bang," he said.
"Coming outside, I found my car in the middle of the road.
"I then went for a walk down the road and found the Magna in the middle of the wall with two people not in a very good way."
Police said the woman and boy was taken to Coffs Harbour Health Campus in a serious condition.
Investigations will continue into the cause of the accident.
Neighbours commented that Lady Belmore Drive has built a reputation as a local speedway and they consider it a dangerous area for pedestrians and parked cars.