If you add prepend an element to an existing list, no copy is necessary. It's just a new head with the tail being the original list. That's an easy case.
If you add a node in the middle of the list you can still share the unchanged tail between the two slightly different prefix sequences.
The simplest example would be with linked lists, I suppose: you have a list A->B->C, then you take the B->C sublist and prepend X to it, so you now have X->B->C, but A->B->C is still around, and "B->C" part is shared between those.
E.g. let's say you create a map with keys A and B. You then insert a new key C. In memory you might have two objects: One is the origi al map with A and B and the other has "Key C and a ref to the first map".