The 26-year-old is set to face Peterlee Magistrates' Court today to face the allegation.
Two other men, aged 33 and 28 and both from Shotton Colliery, who were arrested on suspicion of assisting an offender have been bailed by Durham Constabulary pending further inquiries.
The collision happened on Salter's Lane, Shotton Colliery, at 11.45am on Saturday, when a black BMW 320 and a silver Seat Ibiza collided.
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The 50-year-old driver of the Seat died at the scene.
He is yet to be named by accident investigators.
A bus stop was demolished in the crash, just yards away from the front door of homes on the edge of the village.
Anyone who saw the crash is asked to call Durham Constabulary on 101 or Crimestoppers anonymously on 0800 555 111.