I haven't seen this answer anywhere above, so I am adding it. You want her to avoid reckless driving, because you understand the consequences of it. She currently doesn't, because she is a child that is transitioning to an adult, and doesn't have the experiences that will cause her also to make the correct choices. I would focus on giving her the experiences that will help her make the right (smart, intelligent, wise) decisions on her own. You want her to see firsthand the consequences of her actions. Now this is not always possible, because such things are somewhat rare in our society. I would take a first aid class with her, then volunteer at the local hospital, hopefully in the ER. Now you may not have time for this, so of course, you may need to adjust the actual execution while keeping the principles intact. But remember, firsthand knowledge is so much more valuable then secondhand or third hand. Of course you can listen to a policeman or judge lecture you on safety, but once you have seen firsthand the devastation that a vehicle can do, you will never forget it, and you will change your behavior. I also think it is critical that it not be considered a punishment, but an experience that you and her are having, so as to improve her education on this critical issue, where it was clearly lacking.
There is an interesting legal and moral principle here. By providing her the means to drive the car, you are actually responsible for what she does with it both legally and morally. It may help to explain that to her, that this incident actually represents a failure in judgement that rests on both of you.