I actually turned it off because the extrasensory perception was freaking me out. It's already much more than you should need, but apparently it isn't enough? That would be a 'no' from me.
As for the internals of warning blips, as far as I can tell the server doesn't run any game logic. Asking the client for something like damage doesn't seem like a good idea because of cheating potential. Perhaps hard braking could be detected. There might be some conflation with bad lag but that isn't necessarily a bad thing. Additionally, being on track for a likely collision, especially with a great speed difference, could trigger it.