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Car insurance for a non-rental automobile

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I know this topic has come up a number of times but it's usually related to car rentals. Our situation is a bit different. We are house sitting in Italy in May and they have offered use of their car if we are all assured that we are covered by some sort of car insurance.

We have insurance in the States as does our hosts in Italy. Do we (can we?) get insurance in Italy or are we covered through their policy and ours?

We're really pumped about visiting Italy!

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