Sources close to Lohan have told TMZ.com that her insurance company paid for an undisclosed financial settlement with Tracie Rice.
Rice sued Lohan in 2008, claiming the Santa Monica car chase was “one of the most frightening experiences of my life'.
Lohan was arrested for DUI during the incident, after police learned she was allegedly drunk when she commandeered someone else's car while three young men were inside.
The trio's lawsuit against the actress is still ongoing.
Lohan is currently under house arrest.