Mr Abbott's sedan had been propped by the centre line about to turn right towards a waiting media contingent and local politicians to look at the dangers in a section containing sharp dips just west of Winchelsea.

The van driver braked hard and swerved left to avoid the MP's vehicle and a truck approaching in the oncoming lane.

Behind the van was another semi-trailer driven by Warrnambool's Luke McRae who was suddenly confronted by three vehicles and took split-second action to steer his 35-tonne rig off the bitumen towards the roadside leaving a thick cloud of smoke as the truck wheels locked up under heavy braking.

He narrowly missed Mr Abbott's white sedan, a power pole and trees while keeping the rig upright as it skidded along the gravel and grass.

Observers praised Mr McRae's skilful driving which caught the attention of media outlets around the nation.

After Mr Abbott climbed out of his car he said he was unaware of the drama while it was unfolding.

"I was probably a bit lucky in that I only saw it after it had kind of finished," he said.

"I've got to say that the driver did a great job in keeping his vehicle upright in that situation.

"I'm just very pleased and relieved that no-one was hurt because it could have been a very nasty situation. We look at these two-lane country highways and we feel secure on them, but you are only ever a moment away from disaster."

Mr Abbott had been asked to inspect the highway by local Liberal MP Sarah Henderson who is the latest politician to join a long-running campaign to have the route upgraded.

State Opposition roads spokesman Terry Mulder, of Colac, was in the group by the roadside who watched the drama while waiting for Mr Abbott.