Current state-of-the-art highway traffic flow simulators rely extensively on models using formulas similar to those describing physical phenomena such as forces, viscosity or potential fields. These models have been carefully calibrated to represent the overall flow of traffic and they can also be extended to account for the cognitive limitations of the driver, such as reaction times. However, there are some aspects of driver behavior such as strategic planning which are difficult to formulate mathematically. In this paper, we describe the YAES-DSIM highway simulator which integrates virtual physics models with an agent-based model. The virtual physics component models the physical vehicle and the subconscious aspects of the driver behavior, while the agent component is responsible for the strategic and tactical decisions which are difficult to model using virtual physics. In this paper we focus on the lane change decisions of the drivers, with special attention to the optimal lane positioning for a safe exit. We have used the model to simulate the flow of traffic on Highway 408 in Orlando, Florida and to study the impact of various tactical and strategic decisions on the efficiency and safety of the traffic.