Insert and Overwrite Modes
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Timeline has two main modes; these two modes are found in the bottom left corner of Timeline. The default setting is the insert mode:

Insert mode
Press this button to change to the overwrite mode:

Overwrite mode
Note | The Timeline interface elements coloring differs depending on the selected mode. |
Insert Mode
The insert mode creates a new edit at the current insertion point (the current time in case of a non-drag-and-drop insertion) and moves the rest of the project accordingly.

Note | In some cases, it might not be possible to perform the operation because of the positions of other clips. You will be prompted to unlink some clips, if necessary. |
Overwrite Mode
The overwrite mode makes a new edit at the current insertion point (the current time in case of a non-drag-and-drop insertion) and replaces the corresponding part of the project with the inserted clip.

The overwrite mode takes the current In and Out markers into consideration:
If both In and Out are present, the clip will be inserted starting from In. If it is longer than the In-Out interval, the clip will be trimmed.
If only In is present, the clip will be inserted from the In position.
If only Out is present, the end of the clip will be positioned to the Out point.
If both In and Out points are not present, the insertion will be performed at the current time slider position.
If both In and Out points are not present, the insertion via drag-and-drop will be made at the position where you drop the clip.
Note | In some cases, it might not be possible to perform the operation because of the positions of other clips. You will be prompted to unlink some clips, if necessary. |