The song tells of an encounter on Highway 1 in California, where the protagonist picks up a initially seductive hitchhiker who turns out to be problematic.
Despite the hitchhiker's thefts and drug use, the narrator enjoys the time with her and gives her another chance, leading to an uncomfortable situation.
The experience teaches the narrator to be more cautious and protect himself from potential dangers, as clearly reflected in the line 'So if you see them daisies walkin' 'round, Son, you best just pass 'em by'.