It's possible to get lap times from all racers in the local machine (without insim)? Similar to outgauge but sending lap time info from the local machine to another machine or the same computer.
InSim also works on LAN and internet, as long as you know the correct IP and port (and there is no router or similar blocking the packages). With larger networks you just have to take packet loss into account, on a local machine this is usually not really an issue.
Yes, you can also connect to your local LFS game. InSim is not a server specific thing (for example the camera control packets would be useless if it would only be for servers).