A third person is being treated in hospital for "life-threatening" injuries after the deadly smash in Branton, Doncaster.
An air ambulance, as well as police and fire crews, responded to the incident which took place at around 1pm on Tuesday.
A spokesman for South Yorkshire Police said: "Police h
ave confirmed that two people have died following a collision in Branton earlier today.
"A third person is currently being treated in hospital with life-threatening injuries. All three people were inside the car at the time of collision."
Tracey Jackson and her husband Paul were overtaken by the car involved just before it crashed.
Tracey said: "We were coming home from work when we were overtaken by this erratic driver who was weaving in and out of the road and overtaking cars into oncoming traffic.
"My husband was really angry because it nearly caused us to crash and the five of them in the car were swearing at my husband as they drove past us.
"Next thing we saw a massive plume of smoke come up before we turned the corner and realised that the car had hit a bollard in the middle of the road, lost control and crashed into the side of this house.
"The driver got out of the car and was on fire – he was bleeding on his back and shouting that he was going to get scars.
"Two other people got out of the car and fled but they looked badly injured and one of them had a very severe injury on his leg.
"We don't know what happened to them, they just ran away."
One eye witness told the Doncaster Free Press: "The house it went into was the the one just as you come onto Poppyfields went straight through a wall and stopped at the house breaking all windows and garage and house is unsteady apparently."
Another added: "It was unbelievable.
"The car was in flames and rolled straight into the house on the corner. It rolled straight into the front garden in flames. A man came running out. The air ambulance has been here.
"There is a lot of police around and fire engines. There were plumes of smoke."
Earlier South Yorkshire Police said: "Emergency services are currently attending a serious collision in Branton, Doncaster.
"At around 12.50pm today, Tuesday 25 August, police were called to reports of a car on fire after it was involved in a collision with a house in Poppyfields Way.
"Doncaster Road has been closed from the junction of Warning Tongue Lane roundabout to New Road at the junction with Whiphill Top Lane.
"The road is expected to remain closed for some time while emergency services, including the Yorkshire Air Ambulance and South Yorkshire Fire and Rescue, respond to the incident.
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