Locals are pressing the need for highway upgrades after two people were killed and eight others injured when a B-double truck slammed into two houses on the New South Wales mid north coast.

An 11-year-old boy was asleep in a home on the Pacific Highway at Urunga, 27 kilometres south of Coffs Harbour, about 5am Sunday, when the truck collided with a ute on the road outside and ploughed into the house.

The boy was killed instantly, while the driver of the ute also died at the scene.

The truck also hit the house next door, injuring five people, some of whom were trapped in the wreckage.

David Morris from the Ambulance Service says seven people were taken to Coffs Harbour Hospital.

"From the first house where the young boy died, we've also transported a 14-year-old male in a stable condition," he said.

"There's been two other people from the truck who are in a serious condition with chest and limb injuries."

Coffs Harbour Hospital says all the victims are in serious but stable conditions.

Maree Costello lives down the road from the crash and says she saw the accident.

"I heard the noise, like a screech then a bang," he said. "I looked out the window and I've seen the truck heading for the two houses. It was like a movie."

Call for bypass

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 1 minute 47 seconds 1 m 47 s Urunga resident speaks out ( ABC News )

Allan Phillips lives in one of the houses damaged in the crash and says locals are angry that a bypass has not been built in the area.

He says he is not surprised there has been a tragedy on that stretch of road, but it is still a horrible shock.

"I've been in the same place for over nine years, and in some ways got over the fact that I knew it was going to happen some day," he said.

"You see it too often from my front veranda, all the vehicles, it's not just cars - trucks and motorbikes - all doing way beyond the speed limit in a suburban street, even though it's the highway."

He says it should be a wake-up call for politicians.

"Do something about the roads. How many more lives have to be shattered?" he said.

"Get up off your arse before anyone else has to die, needlessly, grow a backbone and do something.

"How about you politicians on all levels of politics stop giving yourself bloody money and pay rises and put that money back into roads like this so families don't lose their loved ones?"



Coffs Harbour MP Andrew Fraser is appealing for all drivers on undivided stretches of the highway to be aware of other traffic.

"If you don't, accidents like this can happen with absolutely tragic results, where children are killed while they are sleeping," he said.

"I mean this is just horrific beyond all comprehension."

He says a bypass around Urunga is due to be built in a few years, but today's accident shows how urgently it is needed.

"My gut turned when I heard it this morning, my stomach just turned over," he said.

"I just thought, I've been waiting for something like this to happen, be it here or somewhere else. It's just so sad that it happened here in our backyard."

Premier Barry O'Farrell says the Government is working on improving the road.

"The Federal Government has a timeframe of 2016," he said.

"I think that's going to be tight. But we've certainly put dollars in the budget to ensure we see an upgrade of this stretch of road."

Police say the highway is likely to remain shut for several hours as they try to piece together the events that led to the crash.

Drivers are being warned to use diversions and expect lengthy delays.

The Transport Management Centre says light traffic is being diverted via Hungry Head.

Trucks are being asked to use the Oxley, New England and Gwydir highways before rejoining the Pacific Highway.