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Oh man that really sucks. What is the outcome of something like this, is the at fault driver supposed to pay/ help pay? or is there insurance for race cars? what is proper etiquette?

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Come-on guys you know the racing risks. Crap happens and you won't find many guys that will offer or afford to offer financial help. Most guys are on a shoe-string budget with their own racing program. The guy could have at least maned-up and come over to apologizes to the other driver. As of now there is very little on track insurance available as it was really abused and the insurers can not afford the hit. In the small tire class it only a matter of time before its your turn as these cars wreck weekly. Hate to say it but there it is.
Now if you know that someone is intoxicated or on drugs that's another story. That's were the courts may or may not get involved. No drug test no proof.