The rally was abandoned after the collision during the first stage of the event.
Officers will carry out a full road collision investigation and a report will be submitted to the procurator fiscal.
The race is the opening round of the 2013 Scottish Rally Championship.
Dave Robson, chairman of the Scottish Rally Championship, said: "The management committee, competitors and officials of the SRC extend their condolences to the families of those involved in today's incident on Special Stage One of the Snowman Rally. We offer our committed support to Highland Car Club and all those affected at this difficult time."
A statement from Highland Car Club said: "The club extends its sympathies to the families of those involved."