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A 27-year-old woman and her 37-year-old husband were in Puddle Alley, travelling towards Dunedin, in an Isuzu 4WD about 9am when their vehicle was involved in a collision with a Daewoo sedan driven by a 76-year-old man.
The elderly man had pulled out from a give way, turning right, near the intersection of Puddle Alley and Dukes Rd North.
The 76-year-old was taken to Dunedin Hospital by ambulance after he hit his head on the windscreen of his car. The woman was also taken to hospital for observation because of the late term of her pregnancy, he said.
A Fire Service spokesman said the elderly man had to be cut from the sedan.
Snr Sgt Dickie said an investigation was under way and charges would be considered following it.
Police were exploring the possibility ''blind spots'' contributed to the accident and he would raise his concerns with the Dunedin City Council, he said.
A Dunedin Hospital spokesman said the woman was in a stable condition in a general ward. The elderly man was treated in the emergency department and discharged.
There was ''no way'' the man could have avoided the couple because of the wet road conditions, Snr Sgt Dickie said.
Both cars were moderately damaged in the crash.