An automatic external incident detection and reporting system for a vehicle includes at least one of a plurality of cameras and a plurality of proximity sensors, an incident determination unit, a remote vehicle or object position determination unit, and a communication unit. The incident determination unit is configured to receive signals from the at least one of the cameras and proximity sensors, detect whether an external incident has occurred, and determine a type of incident. The remote vehicle or object position determination unit is configured to receive signals from the at least one of the cameras and proximity sensors and determine an incident location. The communication unit is configured to transmit at least the incident location and the type of incident to remote vehicles, to a local access point, or to share the incident location and the type of incident through a crowd-sourcing manner if the external incident has occurred.