You can adjust the size of the decal and the vertical fade to avoid these issues. You can use the mesh's AABB to approximate the size so that it always hits the mesh. I dont know of a way to intersect per primitive, I think that is a fairly expensive operation. That is essentially the same as GPU raytracing except not on the GPU. Another idea would be to use a simplified collision mesh that is on a completely different layer to everything else. Hopefully the engine optimizes that in a way that it is not checked against other colliders during the phyiscs step. But I think the better approach is to fiddle with the decals in a way that the end result is satisfying.
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