Why does a not-at-fault accident affect my insurance?

I was rear-ended and the other driver paid for the damages to my vehicle through their insurance. When my policy renewed I saw that my rates went up so I called my agent and he told me that the increase was primarily due to the not-at-fault accident which will affect me for three years. If I was not in the wrong then why am I being punished for someone else's negligence?

Most people understand that if they were at-fault in a car crash then they will likely see an increase to their rates. Unfortunately, not-at-fault accidents can also affect the rate that you pay for car insurance. Because car insurance is all about risk, the more accidents you have, regardless of fault, the higher the probability is that you could be involved in another crash. This means that you pose a higher risk to insure for your company. According to our State of Insurance analysis, a not-at-fault accident raised rates $98 per year in 2017. Below are some average rates for popular car insurance companies in the US with a not-at-fault accident listed.Furthermore, even if you aren't at-fault in a crash, your insurance company can still be liable for your injuries or damage to your vehicle through your uninsured motorist coverage. This coverage is designed to cover you in the event the at-fault driver does not have any coverage or enough cover to pay for your losses. Unfortunately, these situations increase the cost of doing business for the insurance company and that cost normally gets passed on to the customers. As irritating as that can be, you still have the ability to shop for a better rate with a new company and switch if you are unhappy.