Sam, 4, and Lola, 3, were being driven around by their nanny in a Mercedes SUV when the driver of a Honda made a sudden left turn, cut them off and hit two other vehicles.
Sheen rep Stan Rosenfield tells E! News, "I spoke to Charlie and the girls are fine. He is very grateful because the accident could have been worse. He was very grateful the girls were in their car seats and for the safety features of Mercedes."
A rep for Richards, the star of E!'s It's Complicated, had no comment.
Los Angeles County Sheriff's Lt. Richard Erickson tells E! News: "The accident happened yesterday at 3:28 p.m. when a car pulled out from a side street before traffic was clear. The car pulled into the path of the car that contained the Sheen children."
The collision caused the first vehicle to spin out and hit two other cars.
Erickson says that the driver who caused the accident was the only one injured. That driver was cited for failure to yield.
(Originally published Dec. 13, 2008 at 12:45 p.m. PT.)