Elizabeth Dazzio was driving her sister Caroline and a friend home after watching the singer live in Baton Rouge, Louisiana, when she reportedly fell asleep at the wheel.
The car ran off the road and crashed, but the girls were trapped in the wreckage and all of their phones were dead.
All the girls were wearing Taylor Swift concert bracelets which light up in time to music, and a motorist spotted one of them flashing in the dark.
Elizabeth's sister Caroline told local news station WBRZ: "You could smell the gas and smoke, I was just thinking we need to get out of this car."
The two passers by managed to free the girls and call emergency services.
Caroline and her friend have made a full recovery, and Elizabeth is expected out of hospital soon.
An overwhelmed Taylor has since tweeted the initial reports, writing: "This is unreal. I'm so happy they're okay."
The star is known for treating her fans with surprise gifts and visits, but this is something else.
And the Shake It Off singer - who never seems to stop between live shows, hitting the road, recording, publicity and just being a lovely person to everyone she meets - has dismissed the idea it can be a difficult life.
Speaking to Radio 1's Nick Grimshaw ahead of her show at Big Weekend in Norwich over the weekend, she said: "It's not that hard, I'm telling you now it's really not.
"Sometimes I really don't think it's that hard at all."
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