What I meant was specifically "as if you weren't even there." I'm not saying they should avoid accidents at any cost, I'm saying they should behave like real drivers. I'm sure you noticed the AI in this game interacts with each other and does real passes against each other, but not with you, they basically pretend you're not there. They do stuff like push your rear-end out at the entrance of a corner if you brake early, which would get you an instant disqualification in real life. Instead, he should move to your inside (or outside if inside is unavailable) and attempt to pass you.
Anyway, that's off-topic so I digress.
I think the most important car damage that they need is front air dam flying off. =)