A car was caved in and destroyed after it burst into flames following a crash with a truck on a busy backstreet in Mooloolaba on Thursday morning.

Emergency services responded to reports of a two-vehicle crash on Goonawarra Dr and Palm Dr about 8.50am.

A Queensland Fire and Emergency said a fire crew had arrived at the scene at 8.53am and that the fire was extinguished five minutes later.

She said the vehicle was "fully involved" on arrival.

All occupants of both vehicles were accounted for.

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Queensland Police and paramedics were also on scene.

Traffic had been diverted and was flowing smoothly.

Senior Constable Craig Ballard said the cars collided with each other just before 9am.

"This car's just gone up the back of the ute," Constable Ballard said.

"It was just an accident, because of the wet weather and slippery roads.

"It caught fire, but nobody was injured, they were checked out but nobody required transport."

More to come.