Trust me. EVERYONE that plays LFS suffers from this.
The way I avoid it is to just play totally safe, if you are in the middle of the pack and you think someone behind will hit you, move out of the way and let them through. If you are faster you can get them back, if they are faster then its probably better that they are in front anyway. If you are at the back, hang back and pick your way through the carnage! Being at the front there is nothing to do but start as well as you can, if someone kamikaze's into the 1st corner you can do nothing but hope
If you do get hit and it damages you on the 1st corner, quickly pit (shift - S) and rejoin, you will pass the slower ones and will be further up on the grid for the next race.
dont let it get to you, I had someone purposefully ram me many many times today, just move on and get on with the race.
Keep racing

You will become hooked on lfs
