Howard felt he was shoved into the wall by Hunter-Reay and he lost control of the car when the front right suspension broke on impact.
The Englishman skidded across the race track and collided with pole-sitter Scott Dixon at over 200 miles per hour, sending the Australian flying through the air.
Both drivers somehow escaped unscathed but Howard was furious with how his race had come to an end.
"We ended up a couple of laps down because we ran out of fuel in the first stint and we were out there just trying to pick up some laps and try to salvage something from the race and Ryan Hunter-Reay gets a run on me," Howard told ESPN.
Indy 500: Most spectacular crashes from Indianapolis Sun, May 28, 2017
Express Sport takes a look at some of the spectacular crashes from the Indy 500
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Jay Howard and Scott Dixon collided during the 101st Indy 500
"I lift and let him go, trying to be the nice guy and he moves right over on me and puts me out in the grey and all the marbles.
"The rest is history and he causes a massive accident.
"To say I'm unhappy is an understatement.
"It all happened way too quickly [to avoid Scott Dixon].
Jay Howard and Scott Dixon both saw their Indy 500 dreams shattered in seconds
"I let Hunter-Reay go, tried to tuck in behind him but he pushed me out in the marbles. I was just a passenger at that point.
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"I'm fine. Credit to IndyCar, Indianapolis Motor Speedway, Dallara, Holmatro Safety Team and everyone involved in building the car.
"I'm fine and it's thanks to them. I'm really glad Scott is okay as he was a victim of this so it sucks."