The Police Complaints Commissioner for Scotland (PCCS) has upheld a complaint from the driver, who has not been named, that the force failed to carry out a full investigation into the incident.
The man, who suffered cuts and bruises in the incident on January 12 this year, was initially told by officers the collision was due to the absence of road markings and the narrowness of the carriageway and neither party was to blame.
He was also told the force would only investigate further in the case of dangerous or careless driving or a very serious injury or fatality.
However, the commissioner, Professor John McNeill, found this response was not in keeping with the force's own policy on road traffic collision reporting.
He said: "I hope Tayside Police will follow my recommendations and ensure lessons are learned as a result of the com- plaint and my subsequent review of the way it was handled."
Mr McNeill has recommended Tayside Police now seek a statement from the passenger and reconsider its decision not to investigate the accident further.
A spokeswoman for Tayside Police said: "We note the comments of the PCCS."