Using $D01E causes a simple hardware sprite/sprite collision detection, but some games I wrote i.e. Bomb Chase, Balloonacy and Balloonacy 2 all used hardware sprite/sprite collision, which uses $D01F only for the player's sprite. Here is how the code worked.
lda $d01f lsr a ;Sprite 0 crash into background bcs dead rts dead jmp kill_sprite
However, if you want this to work on the next sprite, just add another 'lsr' command, etc.