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In recent days vehicular ad-hoc networks find its extensive applications by broadcast transmissions. Vehicle to vehicle communication provide better results by avoiding the major problems in the road such as the collision of vehicles, better route selection during congestion, fuel consumption etc. In this paper we present a collision avoidance based protocol. The collision of transmitting data can be avoided using medium access control (MAC) protocol. We have assessed and analyzed the performance of the proposed routing protocol Vehicular Ad-hoc on-demand Distance Vector (VAODV), which is a modification of Ad-hoc On-demand Distance Vector (AODV) routing protocol. We have analysed the performance of the proposed VAODV protocol through simulation results and latter extended for OSPF ensuring high reliability. [ABSTRACT FROM AUTHOR]