I think you have something here.
If you die (at least online), then you need to build another driver persona and go through the license tests again. Let's see if the @#^$@*& drivers get to smashing their cars into you often. Better yet if you get into a crash you get a big and strong driving wheel spin enough to break your fingers just like the real thing

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I would not care much about the visual damage, but i would like to see proper mechanical damage implemented. And if you break your car you'll have to buy new parts for it, and if you total it you'll have to buy a new car.