I think the steel bar is supposed to absorb the shock of another hit. If it is damaged, and you get rear ended, the people in the back seat may get hurt. Assuming it's the rear bumper. If it's the front bumper then it could be you/passenger and the engine that is at risk.

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Im a risk taker. 😅

That's fine as long as you are aware of the risk. I had something similar happen with my car but I don't have kids. If I did, I would be more concerned.

My kids are still in my nut sack no worries 😆. Its only me in the car 99% of the time.