I agree, but it could be better. Some times it looks just amazing, whilst other times it looks daft.
To me damage is an important part of any racing simulator, since its - yes - a simulator.
I always play with 200% damage, because I like the fact that if I screw up, the race is over. A gentle nudge could give me a flat, etc, etc. (This is "fun" in heavy rain!
)
But try it out, sailor steve! Its a great game!