I've always understood that if a title had been issued, it was important to carry it. The title establishes who the owner of the vehicle is--the registration authorizes it to be operated on public roads. So if someone (usually uniformed, sometimes armed, and occasionally belligerent) wants to know who the owner is, they want to see your title.
Ok, I know that doesn't make a whole lot of sense. How do other countries make do with just a single document? And why am I never required to show my title here in the US (where it stays at home in a lockbox)?
It's my recollection that there were times in Central and South America where the border guards knew this about US-registered vehicles, so they demanded titles (no doubt hoping I wouldn't have one and would have to offer cash instead). On the other hand, it could be that I expected them to ask, therefore just handed it over as a matter of course.
I also recall an ex-Soviet border, maybe between Romania and Ukraine, where my title was demanded by a no-nonsense, miniskirted and jack-booted border guard--female, by all indications. This obviously left a lasting impression on me, whatever you make of that. In any case, I carry my title when leaving the US and Canada.
Hope that's helpful.
Mark
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