Police confirmed a man and a woman had been taken into custody. It is believed the man is assisting with inquiries over Monday's car jacking at Gerringong involving an 18-year-old female.

Emergency crews rushed to the scene of a three-car crash at Creamery Rd, Albion Park Rail around 10am on Tuesday.

A police helicopter is hovering over the crash scene and traffic on the Princes Highway is gridlocked in both directions.

Witnesses told of police running through yards after two people.

"I heard just a loud bang and then literally two minutes later a lot of swearing and someone being tackled down in the church ground just there [next door]," Craig, who didn't want his surname revealed, told the Mercury.

"It [the crash] sounded like metal crashing together and literally all the cops were swearing 'get on the f--king ground, get on the f--king ground' and I was like 'what's going on here?'.

"I jumped out of bed and then saw all of this happening. "

Another witness said: "It was a bit scary actually I heard a bang then instantly heard sirens looked out the window there was a masked man running down through the side of my yard."

The woman said police officers forced their way through her gate and police dogs were everywhere.

"It looked like police were chasing a car that crashed at the lights at creamery Rd," another witness said.

"The guy ran and police caught him pretty quickly in the old church yard one the corner."

Two people in one of the cars involved in the crash were on a business, on route to Nowra from Sydney.

Scott Dixon, 34, told the Mercury it seemed police were chasing someone at the time.

"We were waiting at the traffic lights and the next minute 'bam', out of nowhere to be honest," Mr Dixon said.

"It was pretty out of nowhere, pretty unexpected, to be honest. I suppose these things happen and [I'm] grateful to be OK.

"We were just having a chat, we're on a business trip, we were just sort of seeing where we needed to be and having a look around. It's our first time in the area," he said.

"Next minute, just this incredible noise and a bit of a jolt and the airbags jump out, and then you just try and assess what happened. We're okay, thank goodness.

"We've come all the way from South Africa and this happens a fairly regular basis there so we weren't quite expecting it here, but we'll be okay; a bit of fun and games to add to the trip."

Justibn Corbett, 54, who was in the same car, said the pair had been commenting on the drive and how safe Australian roads were with all the regulation and signs that come up regarding driving speeds.

"We were just comparing it to maybe the unregulated driving characteristics in South Africa, and sure enough we get banged in the back by this car that had been hijacked," Mr Corbett said.

"It was overwhelming, you know, and the noise was just extraordinary, that bang, so that was just the weirdest thing.

Earlier, police were hunting for two men who stole a woman's car at knifepoint in Gerringong on Monday night.

Police said the 18-year-old had parked in Standen Lane alongside the IGA supermarket at 4.45pm to buy some groceries.

After returning to her car, she was approached by two men who asked for a lift to the train station just a kilometre away.

Once they got in and she started driving, the teen's suspicions were raised when the men gave her directions to head in a different direction to the station.

As they drove along Camira Avenue - two kilometres from the station - one of the men pulled out a large knife and told her to get out of the car.