And the lights all went out in Massachusetts?

When I was driving a UHaul through MA, the town police caught me with a Maine driver's licence and cited me with unlicensed operation of a motor vehicle. According to the police, I was supposed to have converted to MA driver's licence and MA auto insurance 30 days after I had set foot in MA.

At the court, I was given option to negotiate with the prosecutor who happened to be a really nice young woman. I had to prove I was resident of Maine. Part of the negotiation was I donate $50 to some kinda fund to aid people hit by uninsured operators and I would be free. I had to pay $50 + court fees? Okay, I was also driving at 45 at a 35 mph downhill.

MA has its own price-controlled auto insurance scheme and no insurance company operating in the other 49 states would operate in MA. They seem extremely enthusiastic in inducting as many non-MA residents to be part of their "socially-advanced" state.

Don't you think MA is an extremely megalomaniac communistic/socialist state?

I did attempt explaining to the town police officer. He gave me a"talk to the hand" gesture and said "tell your story to the judge".

Well, I'm italian so I don't know the situation, I've just read what you write about.
I don't think it's necessarily a "communistic" way to solve the trouble.
I say "trouble" because in my country the insurance companies (in my opinion) are not in a real competition, but they make price fixing, following trust agreements.

So, for example, we can buy cheaper insurance only from foreign companies, like Swiss ones; as an alternative we can choose telephonic companies.

So if the MA controls the prices (i hope at a lower price than the national average) it shouldn't be a priori badly seen, or like a communistic/socialistic way of solving the problem.
The compulsory donation you had to do seems fair to me.

Anyway i'm not sure i've understood everything of your story.