Low-velocity impact damage can significantly affect the mechanical properties of fiber–metal composite structures. In this study, an elasticity-based numerical model is developed to simulate the response of fiber–metal composites under low-velocity impact loading. A GLARE laminate with a [Al/0/90/0/90]S stacking sequence is modeled under different impact energy levels, and plastic deformation in the metallic layers, along with the initiation and propagation of delamination damage in the composite layers, is evaluated. The elastoplastic behavior of the aluminum alloy is modeled using the Johnson–Cook criterion, and the initiation of delamination damage in the composite layers is predicted using a modified three-dimensional Hashin criteria. In addition, the propagation of delamination damage in the composite layers is simulated by instantaneously degrading element stiffness. Unlike fracture-mechanics-based approaches that require predefined crack paths, this model employs stiffness-matrix degradation to simulate delamination damage without using cohesive elements. The results show that, with increasing impact energy, the delaminated area in the composite layers increases from 1677 mm² at 8 J to 2249 mm² at 18.5 J. The developed numerical model predicts the initiation and propagation of damage in the GLARE composite specimen with satisfactory accuracy.