While Susan Othman was passing Phillips, he spilled his coffee and swerved, hitting the two teens and forcing them off the road.
The Nissan hit a tree stump and came to an abrupt stop. Both teens suffered injuries and were taken to Duke Hospital.
Yasmine Othman suffered major injuries to both her legs and head. Police say she wasn't wearing her seat belt and died early Sunday morning at Duke Hospital.
Authorities say they believe Susan Othman is still in the hospital, but her condition is not known.
She is being charged with improper passing and speeding.
Officials say Phillips fled the scene at the time of the accident. But officials later found him and he told authorities he fled, because he was having problems with his license.
Phillips is charged with driving left of the center and felony hit-and-run.
Further details about the incident have not been released at this time.