A tool and method for installing collapsible inserts. The tool includes a stabilizing handle which is threaded onto a tool body. The tool body is threaded onto a tool shaft. In use, a collapsible insert is threaded onto the tool and the insert is positioned in a hole in a workpiece. An actuating handle of the tool is then rotated, while holding the stabilizing handle, to cause the collapsible insert to collapse, thereby installing the insert relative to the workpiece. Once the insert has been collapsed using the tool, the actuating handle is rotated in the opposite direction, while holding the stabilizing handle, to disengage the tool from the insert. Then, a hanger is threadably inserted into the collapsed insert and a threaded rod is threaded into the hanger. Alternatively, the threaded rod is directly threadably engaged with the collapsed insert, without need for a hanger.