A method for anticipating a lane change by another vehicle ahead of a vehicle equipped with a sensing system having a camera and a radar sensor includes processing captured image data to determine lane markers of a traffic lane along which the equipped vehicle is traveling, and to determine presence of another vehicle in an adjacent traffic lane. Responsive to processing of captured radar data, an oblique angle of a direction of travel of the other vehicle relative to the traffic lane is determined. Responsive to determination that the oblique angle of the direction of travel of the other vehicle is indicative of a cut-in intent of the other vehicle, and based on the determined range to the determined other vehicle, the system anticipates the cut-in of the other vehicle and applies a braking system of the equipped vehicle to mitigate collision with the determined other vehicle.