On the official TOCA Race Driver 3 site there's a new movie that illustrates the games' damage system. Hopefully this level of damage simulation will become the norm for all racing games before long.

The TOCA series has pioneered the use of damage visuals and physics so you can really experience the reality of what happens when you don't remain in total control of a 500bhp race car! TOCA Race Driver 3's advanced Terminal Damage Engine is hugely rich in its visuals thanks to incredible particle effects and far deeper in terms of physics that effect your car's handling and ultimately your race result.