Yes! Sim Racing absolutely does improve your driving and make you a better driver in real life.

Chances are most people have played a racing game at some point in their lives, whether that be an old arcade racer, Need for Speed or even Mario Kart!
Sim racing is an elite subset of racing games which focus principally on realistic and authentic driving physics and car handling, with the viewpoint of making the simulation as close to reality as possible.

Nowadays, we have abundant high quality software (simulation games) and excellent hardware (pedals, wheels, motion platforms etc) which means that sim racing is closer than ever to reality. 

Transferrable skills is a key benefit of sim racing; that is, you are able to use skills learned in sim racing in the real world. This makes sim racing an invaluable asset for any driver. Whether it's practising your race craft or learning the racing line, what you learn in the sim makes you a better, more prepared and capable driver in real life. We all know how expensive even grass roots motorsport is, so having a simulator to train on is a must.

Nowadays, there are many examples of sim racers who have made the transition in to real racing and enjoyed success. James Baldwin won the World's Fastest Gamer competition and then went on to drive and win a real life British GT race (showing the skills he picked up in the sim did transfer over to real life racing), however another example we will discuss is WTCR driver Norbert Michelisz for yet more proof that sim racing improves your driving. Norbert was an extremely fast racer in the early 2000s virtual racing scene, on the Grand Prix Legends video game. 

Hyundai Motorsport fields Michelisz and Azcona in WTCR - TCR HUB

Norbert took part in various online championships and his success drew the attention of a racing team owner, who gave Norbert a test in his racing car - from then on, Norbert has raced in WTCC, and is frequently among the front runners in the championship (including being 2019 champion). Direct proof that a video gamer, competing online in the early 2000s (when sims were far less advanced than they are nowadays), used the sim to practise and refine his skills, and then was able to naturally transfer these skills into real life driving. Now, he is a regular front runner in the WTCR (the most competitive touring car championship in the world).

Norbert is one example out of many; the point is, nowadays, more and more professional sim racers are forging a career for themselves in real-life motorsport. Proving that for sure, sim racing definitely makes you a better driver. 

No other genres have such transferrable skills and synergy between esports and reality - being a great FIFA player doesn't mean you are a good footballer in real life; being a great Call of Duty player doesn't mean you are a precision marksman in real life - but being a great sim racer does mean that you're more than likely a skilled driver in real life, and we think this makes sim racing an extremely valuable tool for any driver, whether you go karting a few times a year for fun or are a regular trackday participant / motorsport driver.

Whether it be challenging the ghost time of a real life 'VIP' driver on RaceRoom, or finding yourself in the same session on iRacing as Lando Norris, nowadays, sim racing is allowing gamers to race against their real life idols and see how fast they are in comparison, something truly unique. This is why drivers and gamers alike have embraced sim racing.