Is there a way to completely turn it off, and if so how? Thanks!
Go to settings>difficulty>damage/tire wear
Enjoy your dent less car:D
( you can switch it on and off when you want so you can also drive with damage and just repair it when your annoyed by the damage)
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To elaborate, you can drive around with simulation damage and if you need to repair, then do the following:
Go to Settings>Difficulty>Damage as above.
Set to None
Go to Photo Mode > Reset Cosmetic Damage
Go back to difficulty and you can turn simulation damage back on.