NF1 has this implemented, NF2 should as well. When a ship receives damage, their top speed and ability to avoid damage is nerfed according to their damage ratio. For Example:

1.)0% damage - Ship has top speed of 30 knts with no damage  / 40 knts on overheat with 90% avoidance ratio

2.) At 25% damaged - top speed 20 knts / 30 overheat with 75% avoidance

3.) 50% damaged - top speed 10 knts / no overheat allowed and 50% avoidance

4.) 51% or more damage - top speed 5 knots / no overheart and no avoidance on shells