This paper investigates the impact dynamics of pile-soil interactions, focusing on the mechanisms of kinetic energy dissipation within these systems during vehicular impacts. The study aimed to quantitatively evaluate the force-displacement and energy-displacement responses of piles embedded in crushed limestone material through dynamic bogie testing. A three-dimensional, large-deformation, nonlinear finite element model was developed to enhance the analysis. The computational model integrated a damage-based, elastoviscoplastic soil model with an elastoplastic steel pile model, incorporating strain rate effects. A continuum, damage-based element-erosion algorithm is also employed to accurately simulate large soil deformations, representing a significant advancement in simulation capabilities. The proposed model was validated against physical impact test data, demonstrating a strong correlation with measured force-displacement and energy-displacement results. This model was subsequently utilized to investigate the effects of impact velocity and soil strength on the energy dissipation capacity of pile-soil systems during lateral vehicular impacts. Additionally, this study critically examined the limitations of conventional simulation methods, such as the Updated Lagrangian Finite Element Method (UL-FEM), in capturing the dynamic pile-soil interactions and large soil deformations involved in laterally-impacted pile-soil systems. The research provided fundamental insights into the mechanics of dynamic soil-structure interactions under impact loading, contributing significantly to the geotechnical design and analysis of soil-embedded vehicle barrier systems.