Not to necro a dead thread but since this is the first result when you google UE4 Cloth Clipping, I thought I’d post my solution to the issue as I just fixed it for my own project.
First thing I did was to open the Content Example and looked at the values that were being used for Owen’s coat and I found that matching those values took care of a lot of the clipping. So with the clothing tab open, expand the roll outs for Cloth Config and use the following settings:
I highlighted the values that differ from the defaults so they’re easier to spot.
The last value Collision Thickness was from my own tweaking and not from Owen’s settings so you might not need to use this. Leave it at the defaults to start and if you’re still getting clipping, increase the number in increments of 0.25 until you see it going away. This will have the side effect of making your cloth push away from the underlying mesh so don’t use too high values since it’ll look weird. Shouldn’t need to go past 4.
After adjusting to these values this fixed 85% of the clipping. Then for the sections of my mesh that were still showing through, I actually hide them via alpha transparency in my material since they’re covered by the cloth anyway. This might not work in every scenario but it certainly did in my case.
Hopefully this helps anyone else who has this issue.