A39 has now reopened near the Roundswell roundabout.
The female driver of the car and her passenger - a 13-year-old boy, have been taken to North Devon District Hospital. Their injuries are not believed serious.
The horses were trapped for hours after the crash at 9.20am, eventually being released by the fire service at 2.11pm. They are now being cared for by vets.
Recover is now taking place.
Sergeant Dave Thubron is at the scene.