The argument was over an unpaid USD 40,000 loan that Lindsay gave Dina.
She also reportedly withdrew lots of other money from the Lindsay's bank account, including money to help pay for her kid brother's tuition, reported TMZ online.
The argument began in the car when the mother-daughter duo were heading back to Dina's Long Island home around 4 am and escalated when they arrived home.
The fight turned physical and Lindsay sustained a cut on her leg, and had a bracelet broken during the fight.
A 911 call was placed by Michael Lohan who told the dispatcher that Lindsay was being held against her will by her mother and the driver.
Police sources said that they responded to the domestic violence call, and took an incident report, but no arrests were made.
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"She (Lindsay) was yelling, 'I have had enough of this!'" witness John Scalesi, said. .
"It was just a verbal dispute in the vehicle. It was an argument between Lindsay Lohan and her mother Dina," said Nassau police Inspector Kenneth Lack.
"Lindsay called her father and her father called police," he added.
Michael later confirmed that Lindsay and Dina had been arguing in the car, but added, "It was a hell of a lot more than that."