A driver assistance system for a vehicle includes a forward-viewing camera disposed in a windshield electronics module attached at a windshield of the vehicle and viewing through the windshield. A control includes a processor that, responsive to processing of captured image data, detects lane markers on a road being traveled by the vehicle. The processor determines curvature of the road being traveled by the vehicle and detects another vehicle that is present exterior of the equipped vehicle and determines that the detected other vehicle is in the same traffic lane as the equipped vehicle or is in an adjacent traffic lane. The processor processes captured image data to determine distance from the equipped vehicle to the detected other vehicle that is present exterior of the equipped vehicle and within the exterior field of view of the forward-viewing camera. The processor processes captured image data for vehicle speed control.