You should always travel:
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With your driver license and car insurance.
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In a vehicle that officially belongs to you.
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In a vehicle you are used to driving.
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With the documents of all the passengers in the vehicle.
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Explanation
When you're driving, you must always carry the documents that a police officer may request if you are stopped. If pulled over, you are required to show your driver's license, the vehicle's registration, and proof of insurance. The vehicle does not have to be registered in your name, but you must still provide these documents for the vehicle you are operating. You are not legally required to carry or present identification or documents for your passengers.
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This question appears in the following DMV practice tests: