In [10] we presented a new velocity estimation algorithm, using orientation tensors and parametric motion models to provide both fast and accurate results. One of the tradeoffs between accuracy and speed was that no attempts were made to obtain regions of coherent motion when estimating the parametric models. In this paper we show how this can be improved by doing a simultaneous segmentation of the motion field. The resulting algorithm is slower than the previous one, but more accurate. This is shown by evaluation on the well-known Yosemite sequence, where already the previous algorithm showed an accuracy which was substantially better than for earlier published methods. This result has now been improved further.