Teresa Giudice's Daughter Milania Involved in Car Crash, Not Her Fault

Teresa Giudice's daughter Milania is recovering after getting into a nasty car accident, but the same can't be said for her brand new Mercedes that got smashed up in New Jersey.

According to new police documents obtained by TMZ ... Milania was involved in the crash on Friday when her luxury convertible collided with another car in Boonton, NJ.

The report says there was some disagreement on the scene about who was to blame for the wreck ... with Milania claiming the other driver ran a stop sign, slowly traveled through an intersection and hit her car.

The other driver painted a different picture ... claiming they stopped at the stop sign, looked and pulled out, but still somehow ended up crashing into Milania's vehicle.

Cops seemed to side with Milania on this one ... stating in the report that the accident happened due to the other driver's "inattention and failing to yield to the right of way" of MG.

Giudice family attorney James Leonard confirmed Milania was involved in the accident, adding ... "We are extremely grateful that nobody was hurt. That’s all that matters."

Still, we're sure Milania isn't thrilled ... as we're told she was driving a new Mercedes with temporary tags still on it, and it had to be towed from the accident. Always a bummer.

The crash didn't appear to dampen the Giudice family's celebratory spirit ... as Teresa hosted a party in Milania's honor, after she officially decided to attended the University of Tampa.

The 'Real Housewives of New Jersey' star decked out her home with the school colors and tons of college merch.