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Yes it does, it does exactly what it says in the description... no HP damage. Good for racing, not so great for demolition derbies since the only way you can eliminate anyone is removing wheels.
Btw great seeing you modding here. I've had so many hours of fun with your awesome GTA 5 mods. Thanks alot!
black sectors don't kill you, nope.
But they -i think- mean you take engine/transmission/oil damage after the relevant sector is killed off. That's vanilla behavior anyway, sectors seem to properly protect the guts.