Okay so if I were to choose a movement that overlaps an asteroid BUT upon attempt to complete the move I bump and must move backwards until I get to a clear spot. Am I supposed to roll a damage for overlapping the asteroid with my movement still? Or do I avoid it because I bump into a bump that places me in the clear of the asteroid?

If your final position is no longer on the asteroid because you overlapped another ship, then the asteroid doesn't come into play.

I believe the question here will be "does your template cross the asteroid?" The things that will matter are your ship's final position and the template's position. If the ship isn't on the rock and the template never touched it then your ship never interacted with the rock. The bumping probably costs you Actions already but avoiding damage and being able to attack are still important things.