Four other people were slightly injured in the crash, which happened on Monday morning near Avenay-Val-d'Or, in the Marne region of north east France.
The TER local train from Epernay collided with the car on a level crossing.
Four passengers on the train were slightly injured in the collision while the driver is reported to be uninjured but extremely shocked.
A psychological support unit has been set up by the Marne prefecture at the Avenay-Val-d'Or festival hall.
Every year hundreds of people in France are injured at levels crossings, and dozens more lose their lives.
In all, France has over 15,000 level crossings on its rail network, some of which are considered more dangerous than others. While over 10,000 have automatic barriers and warning lights, not all do.
French rail operator SNCF is working on upgrading the unfenced crossings, but said that many of the crashes are caused by drivers ignoring warnings and trying to 'dodge' the barriers.
It is not clear whether the Avenay-Val-d'Or crossing was gated and an investigation into the crash has now been launched.