The incident happened when Sharif was coming back from the hill resort of Murree to capital Islamabad with his wife Kulsoom and daughter Maryam.
Asif Kirmani, a spokesman of Sharif, said Sharif and his family were safe and the car driver has been arrested.
Police sources said Sharif was travelling without routine heavy protocol and detailed security arrangement on the route.
They said the Prime Minister often travels incognito with minimum security to his favourite Murree resort and other places.
However, the office of the Prime Minister did not identify the driver.
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