A silver VW Golf hit a parked car and flipped onto its roof in Collins Avenue, Bispham, yesterday, police said.
The driver fled the scene of the accident, which saw the quiet residential road blocked at around 4pm, a spokesman for Lancashire Police said.
A six-year-old girl also in the car was unhurt and is now being cared for, he said.
A 38-year-old man from Blackpool was later arrested on suspicion of drug driving, driving while disqualified, and driving without insurance, he added.
He was still in custody this morning.
The damaged car was removed on the back of a recovery truck shortly after 5pm, while Collins Avenue was closed by police officers.