He was 71 and leaves behind his widow, two sons and three daughters.
"The accident occurred near Tulasegeri village when the car in which Nyamgoud was travelling crashed into a divider after the driver lost control while trying to avoid a head-on collision with a truck," Tulasegiri police inspector M B Biradar told IANS.
Bagalkot is 530 km from state capital Bengaluru and 20 km from Tulasigeri.
Four persons, including the driver, were injured. They have been admitted to a hospital in Bagalkot.
"The legislator was travelling to Jamkhandi via Bagalkot from Panaji in Goa upon his return from Delhi on Sunday night," Biradar said.
Nyamgoud was re-elected to the state Assembly in the May 12 election, defeating BJP's Kulkarni Shrikant Subrao by 2,795 votes.
The veteran party leader was a Union Minister in the P V Narasimha Rao cabinet in 1990-91.
Chief Minister H D Kumaraswamy and many Congress leaders mourned his untimely death.
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