Police say the accident on Marsh Lane was reported at 3:44pm yesterday (Tuesday) afternoon.
Vehicles involved were a silver Citroen Picasso and a blue Mercedes Vito.
Minor injuries not thought to be life-changing or life-altering were sustained by the passengers and driver of the Citroen. The driver of the Mercedes sustained injuries but they were not thought to be life-threatening.
The road was closed at the Red Lion at around 4:20pm and re-opened after 7.30pm following the recovery of both vehicles... Fire & Rescue and the Ambulance service were also in attendance during the incident.
Marsh Lane is a busy route for visitors to the coast and police have asked for people to allow extra time for journeys.
Last month, a 43-year-old man was pronounced dead at the scene after his black Audi S3 Quattro was found in a field opposite the Skegness Stock Car Stadium in Marsh Lane.