The central use of Bonded Titles is to act as a form of financial protection for potentially harmed parties. However, it also holds benefits for the bondholder. It can allow the bondholder to possess proof of ownership instead of an incomplete, non-existent, or lost title bond.
This is essential, as proof of legal ownership is necessary for buying insurance or selling the vehicle, trailer, vessel, snowmobile, or all-terrain vehicle. The bond may also be passed between owners if the vehicle, trailer, vessel, snowmobile, or all-terrain vehicle is sold, in much the same way a title transfer occurs when an original title is present.