A St John spokesman said two people were taken to Dunedin Hospital with minor injuries after the crash at the corner of Stuart and London Sts.
The crash, which happened just before 3.30pm, caused significant damage to a silver Toyota Corolla and a black Mazda MX5.
A man being treated by St John staff at the scene had a bandage on his head.
The crash slowed traffic as police inspected the scene and spoke to those involved.
Earlier in the day a car crashed into a light pole on Rattray St next to the Speight's factory, leaving one person with moderate injuries.