Emergency services were called to Copeton Dam Road, west of Inverell, following reports of a single-vehicle crash on Tuesday afternoon.
Officers attached to New England Police District arrived to find a station wagon had hit a tree before catching alight.
Fire and Rescue NSW and NSW Rural Fire Service extinguished the blaze, which had also spread to adjoining bushland.
The driver, a 74-year-old woman, was treated by NSW Ambulance paramedics before being taken to Glen Innes Hospital, then airlifted to Lismore Base Hospital suffering suffered broken ribs, a fractured arm and a fractured leg.
Police are investigating the cause of the crash.
Investigations are continuing.