Best Practices for Pawn/Player Collision

Hello all, this is my very first post so I apologize in advance for any oddities and lack of information; I will attempt to provide all necessary information to solve my issue with collision.

So I am trying to re-create a top-down space shooter (Asteroids, Geometry Wars…etc.) I have used many different classes for my player ranging from PaperCharacter, Spectator Pawn, Default Pawn, and then Pawn…

Since the spaceship is not a humanoid I thought it best to avoid anything with ‘Character’ in it so I moved quickly into making my player a type of ‘Pawn’. I still am unsure what type of Pawn my player should be but my current iteration is using the base ‘Pawn’ class:

As you can see I have two components only a ROOT that is a simple sphere with a collision preset of a PAWN.
The other is a Paper2D sprite flipbook that contains no animations for now.

Here is how I am scripting my player to move: (Using the add local offset * dt * speed)

Here is the result of collision among a ‘BlockAll’ sprite in my scene: (Sorry for debug print spam)

All sprites are zero-based on the Y axis.

NOW, if I enable simulate physics…collision begins to work. This makes sense in a logical stand-point…for an object to interact with another object then PhysX needs to be aware of it; HOWEVER, when I notice any other pawn with a MovementComponent the Simulate Physics boolean is disabled but collision works by default?? Does the MovementComponent override and automatically starts simulating physics in PhysX?

I know at this point it seems I solved my own question but it’s more about Best Practices. I want to know if I am actually using UE4 correctly or just using bandages to slowly stop a leaking dam, sorry for the lame metaphor.