Insert01

This is an example of an insert edit. An insert edit places a clip in the other clip without recording over it. To do this, you hold down the Ctrl key and drag clip down into the other clip. I decided to place the 2nd clip where I did because i just did.The difference between an overlay and an insert edit is an insert edit allows you to put a clip into another without recoreding over the original.
You would use an overlay when you want place the clip over the original clip, while you’d use an insert edit when you want to add the clip without recording over the original. In this case the insert edit works better because you do not recored over your original footage..