Harriet Harman, deputy leader of the Labour party, is to be prosecuted for driving without due care and attention and using a hand-held mobile phone.
After the incident on July 3 in Peckham, London, in which Ms Harman is reported to have hit a parked car, the Crown Prosecution Service has decided 'there is sufficient evidence and it is in the public interest to prosecute'.
Reports suggested that Ms Harman stopped at the scene and then drove off without leaving her details.
A spokesman for the MP for Camberwell and Peckham said: 'Miss Harman strongly refutes the allegations and will deny the charges.'
If magistrates find her guilty, Ms Harman could be fined up to £6000 for the offences, have penalty points put on her driving licence and may receive a driving ban.
Labour introduced the law banning the use of hand-held phones while driving in 2003, when Ms Harman was Solicitor General.
Ms Harman was banned from driving and fined £400 in February 2003 for speeding at 99mph on a motorway. She was also fined £60 and given three penalty points for speeding in 2007.