The 53-year-old reportedly crashed into a garage at 11 am on Friday morning and was pictured looking dazed as a bottle with a red cap sat in the car’s front cup holder.
Video footage captured on a Ring doorbell and published by TMZ shows a blue car speeding down the road in the Mar Vista area of Los Angeles.
Seconds later the vehicle is heard crashing into a garage.
In another video from the scene of the garage crash, a man is heard demanding that the driver gets out of the car before she reverses and screeches away at speed around the corner and out of sight.
Moments later she went on to veer into an apartment complex which caused her vehicle burst into flames.
She was dragged from the wreckage by firefighters from the LA Fire Department who spent over an hour extinguishing the flames.
Heche, who dated Ellen Degeneres for three years from 1997 to 2000, is expected to make a full recovery.
Images from the scene show the actress with severely charred clothing as she was rushed to the hospital for treatment.
Eyewitness David Manpearl told DailyMail.com: “At about 10:50am I heard a car go speeding by and looked out my window where I saw the car going about 90 miles an hour.
“Within seconds I heard a loud crash at which point I ran outside.”
“Before I approached the car, I saw the resident of the home standing barefoot in the debris. She was in shock and frantically asked me to help get her pets out of the house,” he explained.
“I was able to get the leashes for her two small dogs and escorted her out of the side of her house. She had her two dogs with her and a tortoise.”
Manpearl then explained how he tried to help the driver who was stuck between the airbag and the seat.
“I tried speaking with her a few times asking if she was ok but she wasn't responding so I had to get closer.”
“I was able to open the back door of the car and crawled halfway inside. This time when I asked her if she was ok, she said no.”
The eyewitness said he asked Heche if she could raise her hand, and she said ‘no’.
He then felt water dripping on him after he realised that another neighbour began spraying a hose on the car which was now in flames.
“I tried to talk to her again and noticed it was getting smokey and the flames were now on my right and my left so I quickly made my way out of the car.”
As the flames began to make their way up the building he attempted to put out the fire with another hose, but couldn’t.
“I was positive that the driver was dead. That she had burned up. It took at least 30 minutes for the fire department to douse the flames, extract the car and pull her out of the car.
“I was surprised to find out that it was Anne Heche. I think I knew she had had problems in the past.”
The owner of the home, together with all her pets spent the rest of the day at Manpearl's house where neighbours brought her food and clothes.
The LA Fire Department have said her whole house was destroyed in the blaze.