Threaded inserts are typically used when the object in which a threaded fastener is being installed is made of a soft material. For hard materials, a screw or bolt can be often driven into the object without the need for a threaded insert. For soft materials, however, driving a screw or bolt directly into the object can damage it. A simple solution is to use a threaded insert. The threaded insert is placed inside the object, after which the threaded fastener is driven into the insert.

Another instance in which threaded fasteners are used is when an existing threaded hole is stripped. If the ridges of a threaded hole have degraded to the point where they no longer support or hold a threaded fastener, a threaded insert can be used.

Finally, threaded inserts can be used when an object is too thin to support the full length of a threaded fastener. Some of the threaded insert may protrude out the back of the object, but a screw or bolt can still be driven all the way into it.