Driver Damian Hodgson was on the B1253 between Rudston and Bridlington when the woman, at the wheel of a Porsche Cayenne, put her foot down to overtake on the dangerous corner.
The dashcam footage shows the driver overtake Mr Hodgson, from nearby Carnaby, and then a Citroen in front, before seeing an oncoming Skoda.
The Skoda mounted the grass verge while the Porsche veered into the Citroen - leaving both damaged - before speeding away.
Mr Hodgson, 35, said: “We were in complete shock. We couldn’t believe what we were seeing.
“We were just getting up to the national speed limit and we were approaching a slow moving tractor and then the Porsche just came flying past. We genuinely thought it was a definite head-on collision.”
Mr Hodgson, who had five passengers including his wife and children, aged two and five, stopped to speak to the Skoda driver, whose car was unharmed. A girl aged around 10 in the front passenger seat was in tears.
He continued on the road towards Bridlington when he saw the Porsche and Citroen drivers pulled to the side of the road.
Mr Hodgson said he stopped to see the elderly couple in the Citroen exchanging details with the Porsche driver.
He said: “The Porsche driver told me she thought she was going to die. She was shaking like a leaf and on the edge of crying as she knew she had done wrong. She was hugging the Citroen driver and was apologetic. She did tell me she always overtakes at that spot though. She said she was picking her husband up from the pub and was wearing a pair of slippers. It’s no excuse to be overtaking on a blind bend.”
The incident was the second Mr Hodgson has captured on his dashcam, after buying one 19 days ago following a crash on holiday in Florida.
He said: “It so easily could have been us. It is just not worth even thinking about though. With the width of my seven seater, if we were in the position of the Citroen, there would have been nowhere for the Porsche to have gone and it could have been fatal. If people do not have dash cams, then there is no evidence to what happened at the collision. I’m glad I’ve got mine now.”
He said he offered the footage of the incident, on August 14 at 5.15pm, to the drivers of the Skoda and Citroen for evidence, but both declined.