For example, if I take an 80mph corner at 55mph with someone behind me, I'm probably going get rear-ended. The AI has to play with the same driving model as you do and sometimes and if there isn't enough room for them to react to you, there's going to be an accident. The AI does spin and lose it, and they sometimes save it too. I have seen the AI cause some fantastic pile-ups, where I had to pick my way through the wreckage in first gear. Speaking of wreckage, the damage modeling is great.
Paint scrapes off, fenders get bent a little or a lot and wheels buckle under.
Only the buckled wheels seem to affect the car, however, as I have not noticed any detrimental effects due to severe body damage. Track design is diverse and each offers a unique challenge. There are two ovals, one a tri-oval and the other oval has a chicane in the middle of the back straightway. Very tricky that one. The remaining six are closed road courses in a variety of settings.