What does an appraisal primarily help with in relation to insurance?

An appraisal primarily helps with determining repair costs for insurance claims because it provides a professional assessment of the damage sustained by a vehicle. This evaluation involves estimating the costs necessary to restore the vehicle to its pre-damage condition, which is crucial for both the insurer and the insured. Adjusters rely on appraisals to fairly assess the financial responsibility of the insurance company in covering the cost of repairs. This process ensures that the claim payment is aligned with the extent of the damages, facilitating a smoother claims process and ensuring that the policyholder receives the appropriate compensation based on the damage severity.

Other options, while relevant in the context of vehicle ownership and transactions, do not directly correlate with the primary purpose of an appraisal in the insurance industry. Negotiating the sale of a vehicle pertains to the marketplace and buyer-seller interactions rather than insurance claims. Assisting in vehicle registration involves documentation and compliance with state regulations, while calculating taxes owed on a vehicle deals with financial obligations rather than repairs or damages. These functions are separate from the appraisal's key role of assessing damages for insurance purposes.