Also well worth mentioning here is the very important WheelDetach parameter found in the cars' .dmg files which affects both the player car and the AI cars. Lower values will make the wheels to more easily get detached at contact between a car and an object. The cause of retirement will then be listed as "Accident" in the Timing screen. A good starting value here is between 10000 and 11000.
I also use the WheelDetach parameter in the game's career option as a measure for the player's health condition after a crash. So, if you crash your car, you'll be in the risk of not being able to participate in the next race/races or even have to start your lifelong game career all over again if you die in the accident. The level of injuries are being measured by how many of your car's wheels that gets detached in the crash, one wheel = not being able to participate in the next race, two wheels = the rest of the season, three or four wheels = death.
And here are my WIP career rules and regulations for the various types of damage regarding the car's "health" condition:
3.2. CAR DAMAGE
3.2.1. BODY DAMAGE
Can be repaired in the pits during a current session (practice, qualifying, and race).
3.2.2. BRAKE DAMAGE (Worn out brake pads)
Can be replaced in the pits during a current session.
3.2.3. SUSPENSION DAMAGE
Can be repaired in the pits during a current session but the player will have to be able to drive back the car to the pits. (If the car is for example stuck in a sand bank, session is also over for the player).
3.2.4. ENGINE DAMAGE (Stalled engine that will not restart)
Session is over for the player as it will not be possible to repair the engine during the session. If the player manages to damage the engine in both qualifying sessions before having set a lap time, the sessions will not be counted and the grid for AI competitors will be based on the real 1967 grid with the player starting last. (Untick the qualifying boxes and set player starting position to last in the Summary screen).
3.2.5. DETACHED WHEEL(S) (Simulating heavy, non-repairable during race weekend, damage to the car)
This means that the player's car will not be able to start the race. Race will not be held in game and points will be awarded to the AI competitors using the real 1967 race results but not including the real player car.