Lohan and a female passenger suffered minor injuries Tuesday after the actress' Mercedes-Benz convertible collided with a van on a West Hollywood street.
"First you heard the squealing wheels. It was just a squelch and then you heard this 'bam' and everybody on the street felt it and saw it," The Insider's Victoria Recaño, an eyewitness, told CBS News' The Early Show.
Witnesses said Lohan, 19, had been shopping at a clothing store when she was confronted, and that dozens of photographers had been following her before the crash.
"There were about 30 photographers outside covering the store; the poor girl just was shopping and they were just like hounding her," said Lori Satzberg, 43.
"She got into her black Mercedes across the street and they literally were like sitting on her car, trying to take pictures of her, she was like yelling at them to get off," said Satzberg, who was shopping with her 13-year-old daughter.
The driver of the van, which careened into a parked vehicle, suffered moderate injuries, Hecht said.
"She was going at a rapid rate of speed," witness Richard Starr said. "I could see her face, I recognized her, and she was laughing with the girl in the car with her and kinda looking over her shoulder to see if anybody was coming behind her."
Authorities said there was no evidence alcohol was involved in the crash. Lohan's publicist did not return a call for comment.
The star of such films as "Mean Girls" and "Herbie: Fully Loaded" also was involved in a May 31 traffic accident when she tried to evade a photographer who collided with her.
The photographer was arrested for investigation of assault with a deadly weapon after police said he deliberately crashed his car into Lohan's.
That crash was credited with prompting passage of a measure Gov. Arnold Schwarzenegger signed into law on Friday calling for steep financial penalties for paparazzi who commit assaults in their efforts to obtain celebrity photos.
The new law allows victims of paparazzi assaults to file lawsuits seeking up to three times the damages they suffered. The law goes into effect Jan. 1.
Tuesday's accident was witnessed by a number of people. Witnesses said they saw Lohan and her passenger run into an antique store immediately after the crash.
"She was very upset," said Javier Ramirez, who works at Hideaway House antiques. "She kept saying, 'Oh my God, oh my God, I can't believe it.' "
Ramirez said Lohan and her passenger left after a few minutes and although both were shaken up, neither appeared badly hurt.