Inserts

This is an example of an insert edit. An insert edit places a clip in between another one while keeping the other clip the same length and in this edit, you do not cut off any part of the original clip, you simply place the new one in between the original one. To do this you simply click and drag the clip from the source panel into your timeline all while holding down the Ctrl key. I decided to place the 2nd clip where I did because it made you see the big jump and see her expression after it.

The difference between an overlay and an insert is that when you use an overlay when you want to replace a certain part of the video and you use insert you use it when you just want to add a clip in without replacing any of the main video. You would use an overlay when you want to cut something out of the main video, while you'd use an insert edit when you just want to add something without replacing anything. In this case the overlay edit works better because there is alot of dead time in the video and you can use the overlay to shorten it and give it a better feel to the audience.