The two daughters of Denise Richards and Charlie Sheen were involved in a car accident yesterday, but a source close to them confirms that they are safe.

“The kids are fine,” a source tells Usmagazine.com.

Sam, 4, and Lola Rose, 3, were riding in an SUV driven by their nanny on the Pacific Coast Highway in Malibu when a Honda cut them off, law enforcement sources said. Four cars were involved in the accident, which was first reported by TMZ.com.

“It could have been worse,” another source told Us. “They were protected by being in their car seats.”

No arrests have been made, and the driver of the Honda was taken to a local hospital. No one else involved was injured.

The reps of Richards and Sheen have not commented on the accident.

Source