Jody Owen, of Walsall, West Midlands, ran down an embankment and jumped into the water to reach the car, which was almost completely submerged with two adults in the front and two children and a dog trapped on the back seat.
Ms Owen had been taking three of her own children and two others she cares for to school in her people-carrier car on 20 December, when at a junction she collided with a car that, she said, 'came out of nowhere'.
The other car disappeared from view while Ms Owen looked for a safe place to pull over. Suddenly her children started screaming and Ms Owen heard the other family calling for help. She realised the other car had slipped into the canal.
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