Q: Can a camshaft position sensor fail due to low oil levels? 2005 Dodge Neon

Hello - it is possible but not likely for a camshaft position sensor to fail from a low oil level directly. If the oil level is very low, to the point where the engine overheats however, yes. Excessive heat can cause a camshaft position sensor to fail. More likely in a "low oil level" situation is for the camshaft, lifters, or camshaft variable timing actuator to fail due to inadequate oil pressure and lubrication. Get the specific problem codes stored in the engines management system, whether the Check Engine Light is on or not. This will help confirm of this sensor, or indicate other problems. I would highly recommend an inspection of your engine for damage from this event by a mobile, professional mechanic, such as one from YourMechanic, who will come to your location, diagnose this problem, give you an accurate assessment of damage and cost estimate for repairs.