Port Fairy Police Sergeant David Walkley said the 43-year-old woman was travelling west on Tower Hill Road around 12.40pm.

"She stopped at the stop sign with Southern Cross Road but failed to see a vehicle travelling north in the 100km/h zone being driven by a 66-year-old Kirkstall woman," he said. Both were sole occupants in the cars.

Sergeant Walkley said the Nissan flipped onto its roof after it struck the other vehicle on the rear passenger side. The driver was briefly trapped in the vehicle, removing herself before police arrived. She was issued a penalty notice for failing to obey a stop sign.

"It's extremely lucky that no one was seriously injured given it's a 100km/h zone," Sergeant Walkley said.

The Kirkstall woman was taken to Warrnambool Base Hospital with chest injuries.

The other driver was assessed by Ambulance Victoria but declined further treatment. Her black kelpie with a red bandana escaped from the vehicle and was last seen heading west on Tower Hill Road.

The CFA and SES also attended.

If anyone sees the dog contact Port Fairy Police on 5568 1007 or Moyne Shire ranger on 1300 656 564.

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