Unobserved heterogeneity induced by omitted variables is a major challenge in developing reliable road safety models. In recent years, the random parameters negative binomial (RPNB) model has been used frequently in crash frequency analysis to account for unobserved heterogeneity. However, the majority of past studies of the RPNB model assumed that there was no correlation between different sources of unobserved heterogeneity, which is not always true given the complex interactions of safety factors. Compared with the RPNB model, a more flexible random parameters model that is the correlated random parameters negative binomial with heterogeneity in means (CRPNBHM) model was proposed in this study. Results indicate that the CRPNBHM model could not only capture the otherwise unobserved heterogeneity, but also track the underlying correlation among different sources of unobserved heterogeneity, thus outperforming the RPNB model. In addition, new insights into the interactions of safety factors (e.g., the joint safety effects of heavy trucks and pavement rutting depth) were obtained from the CRPNBHM model and these are expected to be beneficial in developing effective safety countermeasures. Results from this study demonstrated the CRPNBHM model to be a good alternative for crash frequency analysis, particularly when unobserved heterogeneity was detected.