With regards to typing "CAUTION" racers can't type without slowing right down and their track position controlled by AI which may well end up resulting in a pile-up. So I would suggest...
As soon as I hear someone say caution I will speed onto the track, caution should be called by everyone who see's it in case those involved do not have a mic, if the lead pack are past the pit entry point I will wait for everyone not involved in the accident to pass so as not to cause another accident, as soon as I am on the track I will type "CAUTION". Only when you see me type is the caution officially in effect, continue racing until you see it. Once the caution is in effect, those drivers involved in the wreck are allowed to pass me, they may not pass any other drivers. This will allow wrecks to rejoin the back of the pack without being an entire lap behind. Once everyone is back together and I reach pit entry I will exit and the lead driver should call "ready, ready, ready, green" as they reach the start/finish line, at which point everyone can floor it on "green" and the race is back on.
DJ/Roadrash, can you confirm this sounds ok?