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There are a lot of MMO racing games, yes. Here are some I've heard of:ProjectTorque (not really family friendly)Dark Wind: War on WheelsUse google to find more.
Armour Games offer many types of both online computer games, and apps for phones. They offer puzzle games, strategy games, and war games. They are one of the largest free game sites.
Here are some of my favorite multiplayer games; all of them are free, all of them have options to pay, to get some additional benefits: RuneScape; War of Legends; OGame; Foundation: The Game (unfortunately, this game is currently available only in French).
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Nationstates or SimCountry