We used a physically motivated internal state variable plasticity/damage model containing a mathematical length scale to idealize the material response in finite element simulations of a large-scale boundary value problem. The problem consists of a moving striker colliding against a stationary hazmat tank car. The motivations are (1) to reproduce with high fidelity finite deformation and temperature histories, damage, and high rate phenomena that may arise during the impact accident and (2) to address the material postbifurcation regime pathological mesh size issues. We introduce the mathematical length scale in the model by adopting a nonlocal evolution equation for the damage, as suggested by Pijaudier-Cabot and Bazant in the context of concrete. We implement this evolution equation into existing finite element subroutines of the plasticity/failure model. The results of the simulations, carried out with the aid of Abaqus/Explicit finite element code, show that the material model, accounting for temperature histories and nonlocal damage effects, satisfactorily predicts the damage progression during the tank car impact accident and significantly reduces the pathological mesh size effects.