For insurance, make a quick search on forums. I paid mine 28 pesos per month (less than 10 USD), both in Buenos Aires and Mendoza (Liderar). You need to give them an address in Argentina, the address of your hostel will fit perfectly. You need to keep your insurance payment tickets, since the company will give you a paper for one year but the police wants to see the current paid month. Mendoza is the area where you are most likely to be asked an insurance. Some borders demand insurance from vehicules coming from the neibouring border but amazingly not from vehicules coming from other continents.
No need of return ticket. No need of carnet. The most usually checked paper is the touristic transit permit.
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