Katherine Fox, 23, was travelling behind a silver Range Rover when George Michael tumbled out of the passenger door onto the third lane of the carriageway.
She and other drivers managed to skid to a halt just in time before dashing to help George Michael, who was conscious but in shock, she told The Sun.
George Michael’s Adidas tracksuit was ripped and his trainers and trademark designer sunglasses had been torn off, she said.
Katherine Fox added: “There was a nasty cut on his forehead and the back of his head. There was blood all down his face and on his teeth. He was lucky he didn’t die.”
George Michael, 49, fell out of the car while travelling on a four-lane stretch of the M1 near St Albans, Hertfordshire, on Thursday.
Katherine Fox said she was told he may have been trying to open and close the door because it was not shut properly.
Two friends he was travelling with pulled over onto the hard shoulder and ran across to tend to the pop star.
Meanwhile, Katherine Fox reversed her Mini to a point in the carriageway where it shielded him from oncoming traffic as an off-duty police officer helped to direct vehicles around the scene.
Katherine Fox, a children’s nanny, told The Sun: “George didn’t say anything, he just seemed in shock. He was sitting down against a car and in the arms of his friend.
“The guy holding him was quite scared. If he’d landed in the second lane he would have been hit by a car without a doubt.”
M1 motorway was closed while George Michael was airlifted to hospital with a head injury.
The singer was initially reported that he had been well enough to be discharged later that day.
But a spokeswoman for George Michael today confirmed he remains in hospital for observations, although she insisted he was “fine”.
She said: “He’s still in hospital, but this is standard practice to keep an eye on him.
“He has a couple of bumps and grazes and cuts to the head, but he’s making good progress and looking forward to getting out.”
Police are investigating the incident.
Speaking at George Michael’s home in Highgate, North London, hours after the crash, the singer’s boyfriend Fadi Fawaz, 39, said: “He is perfectly fine. Of course I was worried, but I have spoken to him and he is good.
“He suffered a few bruises but there is nothing to worry about. I have no idea what happened, I wasn’t there.”
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