The accident occurred on Ludhiana-Malerkotla road near village Sarinh, about 20 km from here last night, they said.
The victims were identified as Parveen Gupta, his wife Jyoti, daughters Risha and Shipra and son Krishan.
Police said the family was on way back to Ludhiana after attending some function in Sangrur.
Parveen ran a hosiery factory at Gandhi Nagar here, police said.