I am familiar with the initial work they are doing regarding the virtual reality with phobias. But I would not label your friend's condition as simple
phobiaAgoraphobia
Fears and phobias
Panic disorder with agoraphobia
Phobia - simple/specific
Photophobia
Social phobia as he was in a car accident. Depending on the severity of the accident and his perception of the accident and the assocaited symptoms he has like nightmares, flashbacks, mood instability, your friend may be suffering from a condition called acute stress disorder.
Typically, this condition is treated differently than simple phobia.
I would recommend that your friend consult a psychiatrist for an evaluation.